Nobody denies that China competes with America and European countries in manufacturing many products, including Chinese cars, which have also become ubiquitous on Gulf streets, and in other continents of the world.
Inevitably, it has led to the layoff of workers at some international car producing companies, including the American company Tesla, which produces electric cars.
Tesla is currently preparing to lay off more than 10 per cent of its workers employed at facilities around the world because of a decline in its sales of electric cars amid an escalating price war for these cars, according to Reuters.
Tesla’s latest report indicates that the company has around 140,473 employees worldwide. It is considered one of the largest car manufacturing companies in the world in terms of its market value.
There is no doubt that the upcoming layoffs will affect many workers and their families, as it is expected to impact around 14,500 workers.
Layoffs, as we know, mean dismissal from work for several reasons, most of which relate to the employees’ behaviour and competency.
However, the issue of competition today falls within this framework, as companies try to settle their administrative and financial capabilities with their production conditions and annual sales.
Some companies are forced to make layoffs in certain cases, including financial matters.
When the Covid-19 pandemic spread, the Middle East region and many international companies were subjected to layoffs, with some affected people still looking around for new job opportunities.
This is what happened to us in the Sultanate of Oman as a result of some contracting, real estate and industrial companies laying off national workers.
Tesla CEO Elon Musk indicated in his memo to Reuters that the company is currently preparing for the next stage of growth, in terms of reducing costs and increasing productivity, which led the company to conduct a comprehensive review and decide to lay off 10 per cent of its workers globally.
The process of layoffs in the world over the past years has been clearly visible, especially among technology companies, in addition to making new changes and improvements in new jobs.
Most of these issues result from companies’ desire to reduce annual costs and respond to rising inflation and rising interest rates, in addition to taking precautions against any fears related to recession and severe contraction in the markets.
In January of last year, layoffs in technology companies reached 90,000 workers, with 277 companies working in this field taking such steps.
This is the case today with some car companies, including Tesla, which are reducing the number of jobs in order to reduce expenses and stimulate global demand, in addition to updating new models of cars, so that people can buy them in a way that suits their financial circumstances in light of the high interest rates of financing institutions.
Tesla’s latest report indicates that the number of electric cars it provided to the market during the first quarter of this year is less compared to the same period last year, which also reduced its production.
In general, China is considered a strong competitor in this field, and in other manufacturing fields that consumers need in many parts of the world.
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