(MENAFN) Tesla, the renowned American electric car manufacturer, disclosed plans for significant workforce reductions in both the United States and Europe, signaling strategic adjustments amidst evolving market conditions. In adherence to the Worker Adjustment and Retraining Notice (WARN) Act of 1988, Tesla informed on Monday its intention to lay off 2,688 employees at its Texas factory, complying with labor regulations mandating notice for mass layoffs or closures.
Additionally, Tesla announced its decision to scale back the number of temporary workers at its European facility near Berlin, Germany, following the company's recent declaration of reducing 10 percent of its global workforce. A company spokesperson clarified that 300 temporary workers were notified of this adjustment, emphasizing that this action did not entail terminations for Tesla employees directly. The spokesperson further noted that the majority of these temporary workers have been successfully transitioned to new positions with alternative clients through Tesla's contracting partner.
Amidst these operational adjustments, Tesla responded to market challenges by implementing price reductions for its electric vehicles in key markets such as China and the United States during the month of April. Disappointing sales figures in the first quarter of the year contributed to inventory inflation, prompting Tesla to strategically lower prices to stimulate demand. Notably, in China, Tesla reduced the starting price of its Model 3 to 231,900 yuan (USD32,000), down from the previous 245,900 yuan, as part of its efforts to enhance competitiveness and maintain market momentum amidst evolving consumer preferences and economic dynamics.
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