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Tesla continues to cut jobs in China as part of its global workforce reduction: Report
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Tesla continues to cut jobs in China as part of its global workforce reduction: Report

| @indiablooms | 09 May 2024, 11:52 pm

Beijing: Tesla has increased job cuts in China as billionaire Elon Musk struggles to recover lost market share in the world’s biggest auto market, reported Bloomberg.

The company slashed more jobs in China in May as part of its strategy to slim down workforce worldwide by 10%, Bloomberg reported, citing sources.

As a result, several departments, including customer service staff, engineers, production line workers, and the logistics team at Tesla’s Shanghai plant, where more than half of Tesla’s global production takes place, have been impacted

So far, the exact number of people laid off is not known, said the report.

Tesla has resorted to job cuts amid a global slowdown in EV demand, but  China has taken the biggest hit, said the report.

Tesla faces intense competition from rivals like BYD Co. in China.

Strong competition from the domestic players and weak consumer sentiment is hurting sales.

Exports from Tesla’s Shanghai factory slipped 18% in April even as the overall market for new-energy vehicles grew 33%, the report said.

The reduction in jobs came even as Tesla won in-principle approvals from government officials to implement its driver-assistance system in China, which is likely to boost revenue immediately.

It received approval with specific conditions and overcame two major challenges: finalizing a mapping and navigation agreement with the Chinese technology giant Baidu Inc., and meeting criteria regarding data security and privacy concerns.

Many of the employees laid off in China will receive compensation equal to one month's salary for each year worked, along with an extra three months' pay, according to one source.

Some employees were escorted out of their offices by managers, while others departed in groups using shuttle buses, the Bloomberg report said.

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