Famous car manufacturer to lay off 400 employees

US-based electric vehicle manufacturer Tesla has announced that it plans to lay off 400 employees at its gigafactory located in Grünheide, near the German capital of Berlin.

WEAKENING DEMAND

In a statement from Tesla, the reason cited for the layoffs was that the global weakening of demand for electric vehicles has left Tesla facing challenges as well.

The statement indicated that the layoff of 400 people at Tesla's first factory in Europe is planned, and that the goal is to carry this out through a voluntary program rather than mandatory layoffs.

The statement also included information that negotiations are underway with the work council of the gigafactory in Germany regarding the voluntary layoffs.

More than 12 thousand people work at Tesla's Gruenheide facility. It was also announced last week that the factory would part ways with approximately 300 temporary workers.

Tesla, owned by Elon Musk, had announced earlier this month that it would reduce its global workforce by approximately 10 percent.

TESLA'S SALES DROPPED

According to the vehicle production and delivery data for the first 3 months of 2024 announced by Tesla in April, the company's vehicle deliveries in the first quarter declined by 8.5 percent compared to the same period last year, marking the first year-on-year decline since 2020.

The number of vehicles Tesla delivered in the first quarter of this year was 386 thousand 810. Market expectations were for this number to be around 450 thousand.

Tesla is also expected to announce its financial results for the first quarter today.

News Source: 12punto