Recently, Elon Musk, CEO, Tesla, had expressed his concerns over the state of the economy, because of which he had announced his intention to trim his workforce by 10 per cent. While he hadn’t specified the need to downsize in China, specifically, Tesla in China has called off all hiring events scheduled for June 2022.
About three online hiring events have been cancelled by Tesla, China, which manufactures over 50 per cent of the Company’s vehicles, globally, and accounts for about one fourth of the auto manufacturer’s revenue.
With a two-month lockdown being imposed earlier this year, due to the spread of the COVID-19 virus, production had dwindled considerably at Tesla’s Shanghai plant. A further fall is predicted, which may be a lot steeper than initially expected.
Musk’s comment that Tesla had excess staff in certain departments has led its China operations to call off the hiring events scheduled for the third and fourth week of June 2022. No reason has been given for the cancellation either.
However, the Company has not stopped accepting applications in China. It had earlier sought applications for store managers, supply chain managers, supervisors for factories and aerodynamics engineers amongst others.
Musk had also revealed his intention to reduce the number of salaried employees, to take care of redundancy in some areas. At the same time, he had also said that the number of hourly employees will go up.