Tesla cuts 10% of its workforce, affects international workers

Tesla CEO Elon Musk announced that the company will be cutting "more than 10%" of its global workforce, affecting international workers and members of its China sales team. The company employed over 140,000 people worldwide, including 20,000 in China.

The Chinese EV market, the largest in the world, is becoming increasingly competitive, with Musk acknowledging that Tesla faces challenges from local EV companies. In light of this, the company has denied reports that it laid off a quarter of its workers at its Berlin factory, which employs 12,000 workers.

The company's recent decision is driven by a duplication of roles and job functions as a result of the company's rapid growth. Over the weekend, US-based employees had anticipated layoffs as rumors spread throughout the company. Some managers were instructed to provide lists of employee names to upper management, which led to the termination of employees, effective immediately, on Sunday night.

This is the company's first large-scale layoff since 10% of its salaried workforce was cut in 2022 and a few dozen workers were let go at its New York plant in February 2023.

Tesla's layoff of international workers signifies the company's efforts to cut costs and address duplication of roles as it faces increasing competition in the global EV market.

How will these layoffs impact Tesla's position in the global EV market? Do you think these cuts will help the company weather the current economic storms or is this a sign of things to come?

Share your thoughts below!