A recent report by the local Chinese newspaper, Economic Observer, claimed that Tesla China was looking to cut several jobs after the slow sales experienced by the electric-car maker after a year of its launch in the mainland.
The Elon Musk led company had initial plans to cut around one-third of its jobs which equates to 180 out of 600 current jobs in China. A spokesperson for the company, Gary Tao, confirmed to Bloomberg on Monday that the company was indeed making some structural changes and that cuts were in order.
“The purpose is to better respond to the Chinese market,” Tao said. “The team remains stable and strong.”
According to Tao, the cuts have already started and the personnel have been informed, starting this year. He declined for any further comments. The Economic Observer said Tesla’s local sales department will cut half its workforce, the most among all its departments, including marketing, public relations and administrative offices.
Billionaire Elon Musk had already said that he was looking forward to firing some people to get Tesla’s affairs in order and get the sales back on track. Tesla’s leadership took a serious hit with President Veronica Wu leaving last December. The VP of communications, June Jin resigned last month delivering yet another blow.
The Palo Alto based car maker started its operations in China last year. The company has nine stores and service centers in six Chinese cities and has tied up with local companies to build charging stations across the mainland. Tesla’s ride in China has been rocky so far with high import taxes and lack of power stations. The company had also proposed to install free chargers in its customer’s homes in hopes of boosting its sales.
Featured Image: Flickr | Windell Oskay