Published by Global Banking & Finance Review®
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleTesla's Berlin gigafactory cuts 1,700 jobs, reducing its workforce by 14% to enhance productivity and cut costs.
BERLIN, Jan 21 (Reuters) - Tesla has no plans to curb production or cut staff at its gigafactory outside Berlin, the company said on Wednesday, denying a media report that its workforce there had shrunk significantly over the past couple of years.
"Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans," Tesla said in an emailed statement.
The U.S. electric car maker said that production at the Gruenheide plant south-east of the German capital, Tesla's only production site in Europe, had remained steady in recent years.
"The message from factory management remains: the situation and outlook at the gigafactory are stable - especially with regard to employee jobs," the statement added.
Earlier on Wednesday, the Handelsblatt business daily reported that Tesla's workforce in Gruenheide had shrunk by some 1,700 employees, or 14%, since 2024, citing internal documents inviting staff to elect their works council representatives.
Tesla said it was "completely normal" to see some fluctuation at the nearly four-year-old factory, adding that the need for temporary workers had decreased since the initial ramp-up of production.
In April 2024, Musk told Tesla workers that the carmaker would lay off more than 10% of its workforce globally to reduce costs and improving productivity.
(Reporting by Rachel MoreEditing by Madeline Chambers)
A gigafactory is a large-scale manufacturing facility designed to produce batteries and electric vehicles at high volumes, significantly reducing production costs and increasing efficiency.
Workforce reduction refers to the process of decreasing the number of employees in a company, often due to financial constraints, restructuring, or changes in business strategy.
A works council is a representative body of employees in a company that engages in discussions with management on workplace issues, including working conditions, employee rights, and organizational changes.
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