Tesla, an electric carmaker, is reportedly undergoing a workforce reduction at its Gigafactory in Shanghai, China. While the exact number of employees affected remains undisclosed, sources suggest that approximately 1,000 workers may be impacted by the layoffs.
The reasons for workforce reduction too have not been officially revealed, however it is believed that potential decrease in demand for Tesla’s electric vehicles may have played a role in this decision.
These layoffs come at a time when Tesla is facing increased competition from rival electric vehicle manufacturers and is also dealing with disruptions in its supply chain. Elon Musk, CEO, Tesla recently cautioned that layoffs might become necessary in light of the challenges faced by the company.
The affected employees are believed to be from Gigafactory 3, Tesla’s largest manufacturing facility outside of the United States, located in China. Although Tesla has not officially addressed the layoffs, these developments shed light on the hurdles the automaker is currently navigating.
The consequences of the workforce reduction on Tesla’s production capabilities and overall performance remain uncertain. The ability to navigate and overcome business challenges will be key to its success in the fiercely competitive electric vehicle market.