Tesla on Tuesday (Apr 23) said it was targeting 400 job cuts at its German gigafactory near Berlin, adding the plan was to achieve this through a voluntary programme instead of forced layoffs.

“The currently weakening sales market for electric cars is presenting Tesla with challenges,” the company said in a statement, adding talks were being held with the plant’s works council about the cuts.

Tesla’s Gruenheide site employs more than 12,000 staff and the carmaker last week said it would part with around 300 temporary workers, with the electric carmaker planning global cuts of around 10 per cent.

“It is always in our interest to operate our production as efficient as possible,” the group said adding any resulting gains would be accompanied by adjustments to the use of temporary labour in the future.

The news about job cuts in Germany came ahead of first-quarter results expected later on Tuesday, with investors bracing for the group’s lowest gross profit margin in more than six years as global demand for electric vehicles. REUTERS