Tesla is preparing to cut roughly 1,100 jobs in mainland China, the company said in a statement on Wednesday.
The news comes just days after the company revealed it was considering moving its headquarters from the country to another location, following a surge in sales in China.
Tesla said the decision to move its manufacturing operation to another country would allow the company to increase production in China to meet demand.
“We will continue to build our manufacturing facilities in China, including Tesla Motors Inc.’s upcoming Model 3 electric car, while making investments in new and improved production facilities to deliver a great product that we know our customers will love,” Tesla CEO Elon Musk wrote in the statement.
In a statement to CNBC, Tesla said it was looking to replace 1,300 employees and the company plans to create 500 jobs with additional employees over the next two years.
While Tesla said the new hires will be “highly skilled,” the company noted that some of the jobs will be eliminated as a result of automation.
It also said the company would work with local government and local authorities to reduce the number of factory workers and to ensure that the workforce is properly trained.
With the decision, Tesla is laying off more than 500 workers and increasing its workforce by 1,500 to more than 2,000.