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Tesla boss Elon Musk’s lay-offs mainly target sales staff, leaving production at Shanghai Gigafactory unaffected: sources
- Only a few dozen employees at the Gigafactory 3 were told to leave, a tiny portion of the assembly workforce, say two people with knowledge
- Two sales managers in Shanghai said ‘quite a lot of’ colleagues had been made redundant in the past few days
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Daniel Renin Shanghai
Tesla’s job cuts in mainland China involved mainly sales staff and will not affect production at its Shanghai factory, which accounts for more than half of the carmaker’s total output, according to people with knowledge of the matter.
Only a few dozen employees at the Gigafactory 3 in Shanghai’s Lingang free-trade zone were told to leave, representing a tiny portion of the workforce of 20,000 engaged in the assembly of Model 3 and Model Y vehicles, according to two people with knowledge of Tesla China’s lay-off programme.
But two sales managers in Shanghai said “quite a lot of” colleagues had been made redundant in the past few days, after Tesla CEO Elon Musk told staff on Monday that the company was slashing its payroll by more than 10 per cent across its global operations.
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According to Reuters, Musk informed employees of the lay-offs in an internal memo, with several US-based service centres strongly affected.
Some showrooms across China are likely to face closure as their sales teams shrink as a result of the job cuts, one of the sources said.
Tesla China declined to respond to queries about the lay-offs.
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