Tesla is facing a rough patch – After a sales slump and a strategic U-turn on the $25,000 electric car, the company is now laying off employees across the US.
Hundreds have already lost their jobs in California and Texas, with cuts impacting project managers, engineers, designers, analysts, and even some sales staff. Documents suggest at least 140 people, mostly engineers, are being let go in the US.
Meanwhile, over 10% of Tesla’s sales team in China is reportedly being downsized, while factory workers seem less affected. These layoffs come amidst a period of executive departures and a renewed focus on Tesla’s unproven robotaxi concept.
The layoffs aren’t just in the US. Tesla is allowing people to travel across the globe. In the US, hundreds have been fired in California and Texas, with cuts hitting engineers, managers, and even sales staff. Documents show at least 140 US jobs lost, mostly engineers. Over in China, more than 10% of the sales team is reportedly being laid off, while factory workers seem to be spared.
Germany’s story is a bit murkier. German media reports claim thousands have been fired, but Tesla refutes those claims and says it is following proper procedures. It’s hard to say for sure how many jobs are being cut globally – estimates suggest a 10% reduction (around 14,000 employees) across Tesla’s 140,000 workforce. With layoffs ongoing the full picture will emerge in the coming weeks.
One thing’s for sure: Tesla, the brand that shocked the auto industry, is hitting a road full of obstacles. Whether it’s a short bump or a longer struggle, only time will tell.
