The 10% global job cuts announced by Elon Musk's Tesla amid falling sales will reportedly hit the US and China markets the most. The two biggest markets of the EV maker will witness layoffs in sales, tech, and engineering, reported Reuters citing sources.
The job cuts in the company were required to avoid duplication of roles after a period of ‘rapid growth’, Tesla CEO Elon Musk said in an internal memo to staff on Monday, reported AFP referring to Electrek.
"There is nothing I hate more, but it must be done," Musk said. “This will enable us to be lean, innovative and hungry for the next growth phase cycle,” AFP quoted Musk as saying.
Most of the layoffs identified by the higher management under the current cycle of job cuts will immediately come into effect in several US-based service centres. Most of these centres witnessed job cuts in sales and tech departments, one source told Reuters. Another US location laid off all front-of-house staff.
In addition to professionals from sales and tech, several engineers have also been asked to put in their papers. Nearly 140 staff, mostly engineers, laid off by the EV maker are hunting for the next job opportunity, according to a spreadsheet shared by a Tesla programme manager in California on LinkedIn.
According to a Reuters report, several teams functional in China have been notified to implement the layoff order. Tesla's China sales team were notified that they were being made redundant. Another source told Reuters that more than 10 per cent of employees in the team have been removed from their jobs.
Tesla's layoff drive will not impact its Shanghai plant to a large extent as only a small proportion of staff, amounting to "several dozen" people, will be removed, reported Reuters.
So far, there has been no official statement by the company regarding the impact of layoffs on different markets. The Shanghai and Beijing local governments did not immediately respond to requests for comment.
