Sunday, July 14, 2024

Tesla China recalls laid-off employees as store operations suffer

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Tesla China has recently started recalling previously laid-off employees, with the number of such personnel expected to exceed 100, according to digital media Jiemian News.

The employees that are being brought back are from the charging, sales, after-sales and delivery departments, the news portal reported.

It is reported that if the previously laid-off employees agreed to return, they would have to return part of the layoff compensation that was equivalent to three months’ salary, while their years of service will be recalculated.

Meanwhile, recruitment positions have been released on Tesla’s official website, including renewed sales and after-sales posts in Beijing, Dalian, Wuhan, Guangzhou and other Chinese cities. There were only internship positions before on the website.

Tesla China has not made any comment on the recall claims.

On April 15, Tesla CEO Elon Musk announced that the American new energy vehicle giant will lay off more than 10 percent of its global workforce. The layoffs apparently hit 40-50 percent in the charging, sales and marketing teams.

Talking of the possible reasons behind Tesla China’s abrupt U-turn, analysts said the layoffs may have affected the normal operation of its stores.

Two Tesla employees from the Beijing office were quoted as saying that the number of staff in their office was reduced by 50 percent, while those in the Shanghai office were cut by nearly one-third.

One employee said there are only five to six staffers in a Tesla store now, but usually it needs eight to nine to ensure smooth operation.

Meanwhile, Tesla China’s sales picked up in May under the stimulation of price cuts, with more than 55,000 units sold domestically, surging 77 percent from April and up 30 percent year-on-year, according to data from the China Passenger Car Association. Its wholesale sales of new energy passenger cars in May amounted to 72,573 units (including exports).

Jiemian, citing a laid-off employee, reported that the first batch to be brought back are employees of Tesla’s charging team, with sales, after-sales and delivery employees to follow.

Tesla was also reported in May to have rehired some of the employees of the Supercharger teams in the United States, which was disbanded at the end of April.

Facing various challenges in the global market, including downward trend in sales results and personnel change, Tesla is adjusting its strategy in the Chinese market by reducing interest rates, having updated the purchase incentives for its Model 3 and Model Y models on its domestic website.

Customers who buy a standard-range or long-range 4×4 Model 3/Y before July 31 will be able to enjoy a five-year, 0-interest installment payment plan.

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