Tesla Motors Inc. announced it is eliminating positions in China after a local newspaper reported the company will reduce staff by 30 percent.
The electric-car maker led by billionaire Elon Musk will reduce jobs as it makes structural changes to its business in China, Gary Tao, a local spokesman for the carmaker, said to Bloomberg. He said he didn’t know how many jobs will be affected. The current personnel changes started at the beginning of the year, Tao said.
“The purpose is to better respond to the Chinese market,” Tao said. “The team remains stable and strong.”
Earlier, the Chinese newspaper Economic Observer reported the company will eliminate 180 of the 600 positions at its China unit because sales haven’t met expectations.
The periodical said Tesla’s local sales department will cut half its workforce, the most among all its departments, including marketing, public relations and administrative offices.
Local executives including Veronica Wu, Tesla’s former
China president, and June Jin, former vice president of
communications, have recently left the company.
Musk said in January sales in China have been slow because of concerns consumers have over charging electric vehicles.
Tesla started delivering cars in the world’s largest auto market last year. The company has nine stores and service centers in six Chinese cities and has tied up with companies including China Unicom and Soho China Ltd. to build charging stations.
