Additional layoffs at Tesla's China plants began earlier this week, extending mid-April cuts that were part of the electric vehicle maker's pledge to reduce its global workforce by more than 10%, Bloomberg learned from people who asked not to be identified.
Layoffs at Tesla's largest factory
The latest staffing moves affect a range of departments, including customer service staff, engineers, production line workers and the logistics team at Tesla's factory in Shanghai – home to more than half of the company's global production. Last month's layoffs mainly affected sales representatives, Bloomberg sources say.
According to one of the people, most laid-off workers in China will receive an amount equivalent to one month's salary for each year they have worked, plus an additional three months' salary.
It's unclear how many people will be affected and what impact it might have on Tesla's business in China. Representatives of the China-based company did not respond to Bloomberg's requests for comment.
Tesla is losing market share in China
The largest wave of layoffs in Tesla's history This is the result of a global slowdown in demand for electric vehicles. The decline in interest in electric cars has hit Tesla particularly hard in China, where there is strong competition from local manufacturers such as BYD and weak consumer sentiment is hurting sales.
Deliveries from the Shanghai plant fell 18% in April, while the overall electric vehicle market grew 33%.
According to Bloomberg News calculations, in the first quarter of 2024, Tesla's share in the Chinese market dropped to about 7.5%. with 10.5 percent during the same period last year.
