Tesla lay off: US, China worst affected markets owing to 10% global job cuts by Elon Musk’s EV firm
The 10% global job cut announced by Elon Musk’s Tesla amid falling sales will reportedly hit the US and China markets the most. The two biggest markets of the EV maker will witness lay offs in sales, tech, and engineering, reported Reuters citing sources.
The job cuts in the company were required to avoid duplication of roles after a period of ‘rapid growth’, Tesla CEO Elon Musk said in an internal memo to staff on Monday, reported AFP referring to Electrek.
“There is nothing I hate more, but it must be done,” Musk said. “This will enable us to be lean, innovative and hungry for the next growth phase cycle,” AFP quoted Musk.
Impact of Tesla job cuts in the US
Most of the lay offs identified by the higher management under the current cycle of job cuts will immediately come into effect in several U.S.-based service centres. Most of these centres witnessed job cuts in sales and tech departments, one source told Reuter. Another US location laid off all front-of-house staff reported the news agency.
In addition to professionals from sales and tech, several engineers have also been asked to quit their services to the company. Nearly 140 staff, mostly engineers, have been laid off by the EV maker and have now begun their hunt for the next job opportunity, according to a spreadsheet shared by a Tesla programme manager in California on LinkedIn of over 140 staff.
Tesla job cuts in China
According to a Reuters report, several teams functional in China have been notified to implement the lay off order. Tesla’s China sales team were notified that they were being made redundant. Another source told Reuters that more than 10% of employees in the team have been removed from their jobs.
Tesla’s lay off drive will not impact its Shanghai plant to a large extent as only a small proportion of staff will be removed amounting to “several dozen” people, reported Reuters.
So far there has been no official statement by the company explaining the extent to which different markets of the company will be impacted because of the lay off. The Shanghai and Beijing local governments did not immediately respond to requests for comment.
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Published: 16 Apr 2024, 03:50 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.