The internal documents tell one story. Tesla’s press statement tells another. According to works council election records obtained by German business daily Handelsblatt, Giga Berlin’s headcount dropped from 12,415 in 2024 to 10,703 today. That’s 1,712 fewer workers. A 14% decline. Tesla’s response? “Compared to 2024, there has been no significant reduction in the number of permanent staff.”

Notice the qualifier. Permanent staff. Tesla isn’t disputing the numbers. The company is redefining the conversation.

The key details:

Giga Berlin employed 12,415 workers during 2024 works council elections, per internal documents
Current workforce stands at 10,703, a reduction of 1,712 employees (13.8%)
Tesla’s defense: “Permanent staff” remained stable; temporary worker reductions are “completely normal”
Plant manager André Thierig did not respond to Handelsblatt’s request for comment

Tesla’s Semantic Defense Collapses Under Scrutiny

The Gruenheide plant southeast of Berlin is Tesla’s only European production facility, responsible for manufacturing the Model Y for the European market. Tesla’s official statement to Reuters insisted production has “remained steady in recent years” and that the situation at the gigafactory is “stable – especially with regard to employee jobs.”

The company attributed workforce fluctuations to reduced demand for temporary workers since the “initial ramp-up of production” phase. This explanation might hold water if the factory were exceeding capacity. But Giga Berlin has never reached its stated 500,000-unit annual production target. The facility currently produces around 5,000 vehicles weekly, or roughly 260,000 units annually. That’s barely half of stated capacity.

What’s actually happening: Tesla reduced temporary workers to cut costs while maintaining the fiction that “permanent jobs” remain secure. For the 1,700 people who lost their livelihoods, the distinction is meaningless.

The Timing Connects to Musk’s April 2024 Layoff Directive

In April 2024, Elon Musk announced Tesla would lay off more than 10% of its global workforce to reduce costs and improve productivity. That directive triggered departures of key executives including chief battery engineer Drew Baglino, Supercharger division head Rebecca Tinucci, and global public policy chief Rohan Patel.

At the time, Giga Berlin was supposedly spared from deep cuts. The original announcement suggested only 400 positions would be eliminated at the German facility. Yet the internal documents now show a reduction nearly four times that figure.

Plant manager André Thierig told German publication Tagesspiegel as recently as March 2025 that there were “no plans for production stoppages, job cuts, or short-time work” at Gruenheide. According to Handelsblatt’s reporting, Thierig maintained into autumn that jobs were only being cut “elsewhere.”

The internal documents suggest otherwise.

Tesla’s European Crisis Provides Context

This workforce story cannot be separated from Tesla’s broader European collapse. The company’s EU market share has fallen from roughly 20% to under 9% in just two years. German sales dropped 60% in June 2025. October 2025 registrations cratered by double digits across nearly every European market while the broader EV industry grew 26%.

Sweden saw an 89% decline. Denmark dropped 86%. Germany fell 54%. These aren’t temporary dips. This is sustained demand destruction.

Chinese competitor BYD sold 17,470 vehicles in Europe during October 2025, more than double Tesla’s 6,964 units. The company that once owned European EV sales is now fighting for third place behind Volkswagen and Chinese manufacturers.

Against this backdrop, maintaining a 12,000-person workforce at a factory running at half capacity makes no financial sense. The question isn’t whether Giga Berlin reduced headcount. The question is why Tesla insists on denying it.

The Battery Promise That Keeps Getting Delayed

Tesla announced last month it plans to produce up to 8 GWh of battery cells annually at Gruenheide, starting in 2027. This is the same promise made when the factory opened in 2022. In 2021, Brandenburg’s Economy Minister described Tesla’s planned cells as a “completely new technology” that would “outshine all previous car batteries.”

By late 2022, Tesla had moved most battery equipment to Texas to capitalize on Inflation Reduction Act incentives. Now we’re hearing the same promise again, with an even more distant timeline.

Tesla’s own statement admits: “It is currently hardly possible to produce cells economically in Europe.” That’s not a commitment. That’s a hedge.

Union Tensions Add Another Layer

The workforce reduction comes amid escalating tensions between Tesla management and IG Metall, Germany’s powerful metalworkers’ union. According to recent Handelsblatt reporting, Thierig has warned that if IG Metall gains control of the works council, future investments in the plant could be halted.

This creates a convenient narrative for any future downsizing. If production cuts become undeniable, Tesla can frame them as labor problems rather than demand problems. It’s a potential exit strategy disguised as labor relations.

Tesla Keeps Production Goals On Track Amid Changes - Giga Berlin Started To Crank Out Tesla Model Y Vehicles

EVXL’s Take

Tesla’s “permanent vs. temporary” defense is textbook corporate communications. Technically accurate, functionally misleading. The company isn’t lying when it says permanent staff reductions haven’t been significant. It’s simply excluding the 1,700 temporary workers who lost their jobs from the definition of “workforce.”

We’ve been documenting Tesla’s European decline all year. The pattern is consistent: sales collapse, followed by defensive pricing (Model 3 Standard launch at €37,970), followed by workforce “optimization,” followed by promises about future investment (battery production in 2027).

En 53% April sales drop, the 40% May decline, the 48.5% October collapse, and now the 14% workforce reduction all point in the same direction: Giga Berlin is running a factory built for a market that no longer exists.

Expect Tesla to maintain the “jobs are secure” messaging through at least Q1 2026. The company needs positive headlines ahead of earnings. But if European sales don’t recover, and there’s no indication they will, another round of workforce reductions is inevitable. The only question is whether Tesla will call them “permanent” this time.

FAQ

How many workers did Giga Berlin lose?

According to internal documents obtained by Handelsblatt, Giga Berlin’s workforce dropped from 12,415 during 2024 works council elections to 10,703 currently, a reduction of approximately 1,712 employees or 13.8%.

What is Tesla’s response to the workforce reduction reports?

Tesla stated that “Compared to 2024, there has been no significant reduction in the number of permanent staff” and described workforce fluctuations as “completely normal” at a factory that has reduced its need for temporary workers since initial production ramp-up.

Is Giga Berlin operating at full capacity?

No. The facility has stated capacity of over 375,000 to 500,000 units annually but currently produces approximately 5,000 vehicles per week, or roughly 260,000 units annually. This is about 50-70% of stated capacity.

How have Tesla’s European sales performed in 2025?

Tesla’s European sales have collapsed throughout 2025, with the company’s EU market share falling from roughly 20% to under 9%. Germany saw a 60% sales decline in June, Sweden experienced an 89% drop in October, and Denmark fell 86% during the same period.

Editorial Note: This article was researched and drafted with the assistance of AI to ensure technical accuracy and archive retrieval. All insights, industry analysis, and perspectives were provided exclusively by Haye Kesteloo and our other EVXL authors, editors, and YouTube partners to ensure the “Human-First” perspective our readers expect.