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Tesla to Lay Off at Least 10%! Mainly Targeting the U.S. and China: Sales Affected

La Mu Wed, Apr 17 2024 10:18 AM EST

On April 17th, local time last Sunday, Tesla initiated a large-scale layoff globally, exceeding 10%, resulting in at least 14,000 people losing their jobs.

According to media reports, the layoffs are primarily aimed at reducing the number of employees in the United States and China, as these two countries are Tesla's largest markets in terms of sales, technology, and engineering investments.

Sources revealed that several service centers in the U.S. carried out massive layoffs immediately after the layoff notices were issued, mainly targeting sales and technical personnel. Some stores also dismissed all front-line staff.

Members of Tesla's sales team in China have also received layoff notices, with the proportion far exceeding Musk's mentioned 10%. Some departments will be optimized by 30% to 40%, or even up to 50%. However, only a small number of employees will be laid off in Shanghai, where Tesla's largest factory is located, totaling only a few dozen people.

It is worth noting that on the day Musk announced the layoffs, two senior executives of Tesla announced their resignations successively, including Tesla's "number two" Andrew Baglino, who was previously ranked just below Musk in the company's hierarchy, ahead of rumored successor candidate Zhu Xiaoming.

Baglino had served at Tesla for 18 years, witnessing the company's journey from startup to dominance. However, just before Tesla's massive layoff of thousands, he abruptly left the company where he had worked for many years, leaving the reason a mystery. da09007b-912c-48fd-b4b4-5728cdb3b852.jpg