Tesla has reduced its workforce at Gigafactory Berlin by approximately 1,700 employees over the past year, according to a report from German newspaper Handelsblatt. The Grünheide plant now employs 10,703 workers, down 14% from 2024 levels. This downsizing occurred despite denials from the plant manager.
Tesla's Gigafactory in Grünheide, south-east of Berlin and the company's only production site in Europe, has seen a significant reduction in staff. A report published on January 21, 2026, by Handelsblatt, citing internal documents from the works council election committee, reveals the current workforce stands at 10,703 employees. This marks a decline of roughly 1,700 workers—or nearly 14%—compared to the 12,415 employed during the previous works council election in 2024.
The job cuts are particularly striking given repeated denials from plant manager André Thierig. As recently as last month, Thierig stated there were “no plans” for staff reductions, even amid stagnant or declining production volumes. A Tesla spokesperson did not immediately respond to requests for comment on the report.
Some of the attrition may stem from Tesla's global layoffs in April 2024, when Elon Musk announced the company would cut more than 10% of its worldwide workforce to reduce costs and boost productivity. However, the reductions at Gigafactory Berlin appear to have continued beyond that period. It remains unclear whether the changes involved direct layoffs, voluntary buyouts, or simply not renewing temporary contracts—a method Tesla has used previously to adjust headcount without formal notifications.
This downsizing aligns with broader challenges in Europe, where Tesla faces intensifying competition from Chinese electric vehicle makers and established automakers. The factory, designed to produce over 375,000 vehicles annually, now operates with excess capacity relative to regional sales. Analysts note that such underutilization could strain finances, raising questions about the plant's long-term viability amid ongoing union tensions and halted expansion plans.
