Tesla plans 400 job cuts in Germany through voluntary programme

Tesla on Tuesday announced its intention to reduce 400 jobs at its gigafactory near Berlin, Germany, aiming to implement the cuts through a voluntary programme rather than compulsory layoffs.

In a statement, the company cited challenges arising from the current downturn in the electric car sales market. Tesla clarified that discussions were ongoing with the plant's works council regarding the proposed job cuts.

The Gruenheide site, which hosts Tesla's operations, currently employs over 12,000 workers. Last week, the electric car manufacturer revealed plans to part ways with approximately 300 temporary employees. Additionally, Tesla is planning global workforce reductions of about 10 per cent.

Tesla stressed on its commitment to operating production facilities efficiently, noting that any resulting efficiency gains would prompt adjustments to the utilisation of temporary labour in the future.

The announcement of job cuts in Germany comes ahead of the release of Tesla's first-quarter results, expected later on Tuesday. Investors are expecting the group's lowest gross profit margin in more than six years, reflecting a downturn in global demand for electric vehicles.

(With Reuters inputs)