Tesla plans to lay off 400 workers in Berlin amid declining sales

Tesla announces its decision to lay off 400 workers at its Grünheide Giga factory near Berlin because of weakened demand for electric cars

ABD-based electric car manufacturer Tesla has announced plans to lay off 400 workers at its Giga factory in Berlin-Brandenburg, located near Berlin.

According to a statement from Tesla, the company faces challenges because of the declining global demand for electric cars.

The statement indicated that 400 employees are planned to be laid off at Tesla’s first factory in Europe, and it aims to achieve this through a voluntary program rather than mandatory layoffs.

The announcement also mentioned that discussions are underway with the gigafactory’s works council in Germany regarding voluntary redundancies.

Over 12,000 people are employed at Tesla’s Gruenheide facility.

Last week, it was announced that the factory would also part ways with about 300 temporary workers.

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

Tesla’s sales declined for the first time since 2020 in the first quarter

According to the vehicle production and delivery data for the first three months of 2024 released by Tesla in April, the company’s car deliveries decreased by 8.5% in the first quarter compared to last year, showing an annual decline for the first time since 2020.

The number of vehicles delivered by Tesla in the first quarter of this year was 386,810 – compared to the market expectation of around 450,000.

Source: Newsroom