Tesla Inc (NASDAQ:TSLA) is to made 400 people redundant at its German gigafactory in response to a slowdown in electric vehicle demand.
“The currently weakening sales market for electric cars is [...] presenting Tesla with challenges,” Tesla said in a statement.
Some 12,000 people are employed at Tesla’s Gruenheide site near Berlin, with these cuts of 3.3% of staff at the plant coming as part of wider plans by the company to reduce its headcount globally by 10%.
These cuts will take place through voluntary redundancies, according to Reuters, and come after reports last week that Elon Musk’s firm would lay off 300 temporary workers.
Tesla is due to report on the first quarter after US markets close on Tuesday, with the company having repeatedly cut prices of its vehicles to stimulate demand in recent months.
“The market will focus on forward guidance [...] and also an explanation for the recent rush to cut staff numbers and slash global car prices,” XTB analyst Kathleen Brooks said ahead of the update.