Tesla China Sales Department Layoffs Mostly New Employees Within Six Months

On April 16th, it was reported that Tesla has started communicating with its stores about the list of employees to be laid off, “almost every store has someone being laid off.”

Tesla sales department personnel stated that the majority of the laid-off employees are new employees who have worked for less than six months. ‘These people will be compensated according to a formula of ‘0.5N+3′. Due to Tesla’s high basic salary, the compensation received is approximately 40,000 to 50,000 yuan.’

Another Tesla employee who was laid off internally stated that on April 16th in the afternoon, internal employees began receiving resignation notices and completing procedures. The compensation amount for all is ‘N+3’, with a layoff rate of 20% in their department. The layoff process has been completed.

On April 16th local time, Tesla CEO Musk posted on social media platform X that Tesla is streamlining its sales and delivery system. Musk said that the system has become ‘complex and inefficient’.

Musk stated that the company will lay off more than 10% of its global workforce. Based on Tesla’s global employee count, this round of layoffs will affect over 14,000 employees.

SEE ALSO: Tesla Model Y Set for 5,000 Yuan Price Increase in China