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Layoffs continue in Tesla, 6,000 workers have been out of the company this year

Earlier this month, the company had laid off workers from software, service, and engineering departments. This signals a major change in Tesla’s strategy.

American electric vehicle maker Tesla has been facing difficulties for the last few months. Despite reducing the prices of electric cars, the company’s sales are not increasing. For this reason, Tesla’s Chief Executive, Elon Musk, has decided to make layoffs. Nearly 6,000 workers have been laid off since the beginning of this year.

Musk has said that this will reduce Tesla’s costs and make its international business balanced. Tesla plans to reduce its total workforce by about 10 percent. The company has informed about the removal of more than 600 workers from its plants in California, USA. This layoff will start from next month. Research and development and manufacturing are conducted at the company’s Palo Alto plant in California. Apart from this, all Tesla models except Cybertruck are manufactured in the Fremont plant.

Earlier this month, the company had laid off workers from software, service, and engineering departments. This signals a major change in Tesla’s strategy. The company needs to deal with challenges like declining sales and tough competition from EV companies like China’s BYD. At the end of last month, Musk laid off some executives from the company’s senior management. Earlier, Tesla’s workforce was reduced by about 10 percent. Musk had said that the company needs to be reorganized. Musk has decided to make cuts in Tesla’s senior management as well as lay off hundreds of workers. In the first quarter of this year, the company’s profit had declined to approximately $1.13 billion. In the same period last year, it was worth $2.51 billion.

A few months ago, the company had reduced the prices of some of its models in America by up to $2,000. Tesla’s EV deliveries declined by about 8.5 percent in the first quarter. Recently, Musk had postponed his visit to India. During this visit, he was also to have a meeting with Prime Minister Narendra Modi. Musk has also sought permission for his satellite internet service providing company Starlink to start business in the country.

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