A recent report by Germany’s Handelsblatt revealed that Tesla’s Gigafactory near Berlin has experienced a decrease in its workforce by approximately 1,700 employees.
According to an internal document cited by the publication, the Gruenheide site, which is Tesla’s sole European production facility, now employs 10,703 individuals. This marks a decline of around 14% from the staffing levels disclosed prior to the works council elections in 2024. Tesla has refrained from providing immediate comments on the matter, as reported by Handelsblatt.
This reduction comes in the wake of CEO Elon Musk’s announcement in April 2024 regarding Tesla’s decision to reduce more than 10% of its global workforce with the aim of cutting costs and enhancing productivity.
The downsizing aligns with a broader industry trend in early 2026, where manufacturing and technology companies are streamlining operations amidst slower demand growth, tighter financing conditions, and a focus on protecting margins following years of aggressive expansion.
In 2025, Tesla transitioned from rapid expansion to consolidation, emphasizing cost control, factory efficiency, and cash preservation as automotive margins were pressured by aggressive price cuts and softer demand.
Despite challenges in its traditional auto operations, Tesla’s stock has remained resilient, with investors looking towards the company’s long-term prospects in areas like robotaxi services, autonomous driving software, and artificial intelligence as potential sources of high-margin growth.
This optimism has helped bolster Tesla’s stock price amid a backdrop of slowing vehicle sales and widespread job cuts across the manufacturing and technology sectors in 2026, as companies adapt to weaker growth and increased financing costs.
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