Tesla Cuts ~1,700 Jobs at Berlin Plant in a Year, Contradicting Earlier Denials

According to internal documents from the works council cited by Germany's Handelsblatt, the workforce at Tesla's Berlin Gigafactory has decreased from 12,415 employees in 2024 to the current 10,703—a reduction of approximately 1,700 staff, or nearly 14%, within a year. This downsizing contradicts previous public statements by factory manager André Thierig that there were no plans for layoffs. The exact method of the reduction remains unclear, but it may involve non-renewal of temporary contracts to avoid triggering legal obligations for large-scale layoff notifications. The personnel cuts come amid declining Tesla sales in Europe and intensifying competition from Chinese and traditional automakers in the electric vehicle market. Although the plant has an annual production capacity exceeding 375,000 vehicles, it faces insufficient market demand. Additionally, expansion of the facility has been put on hold. If the IG Metall union gains control of the works council, Tesla could further scale back its investment, raising external concerns about the plant’s operational stability.