More towards 20 percent?
Tesla seemed to be planning to cut about 10 percent of its workforce, but a much larger share is said to fear job loss. This comes out at the same time that another wave of layoffs has been announced in the US.
According to those involved, Tesla CEO Elon Musk wants to cut more jobs than the announced 10 percent, which could amount to up to 20 percent. That picture already seems to be emerging in the US. Tesla said last month it would lay off more than 6,000 people in California and Texas as part of its workforce cuts, but now plans to cut another 601 jobs in California. The new round of layoffs affects employees at the Tesla factories in Palo Alto and Fremont, Tesla reports in a message to the California state government.
CEO Elon Musk announced in April that Tesla would cut more than 10 percent of jobs worldwide to save costs. Even then there were rumors that it might even be 20 percent. The company employs approximately 140,000 people. Tesla is struggling with a worldwide decline in demand for electric cars. The company is experiencing intense price competition, especially in China. Partly because of this, the automaker experienced its worst quarter in years last quarter. Tesla has since implemented several rounds of layoffs. For example, Musk already announced that he would close down almost the entire Supercharger charging station division of his car company. Approximately five hundred employees lost their jobs.
– Thanks for information from Autoweek.nl