Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Employees sour on Tesla amid cost-cutting, layoffs

Stock MarketsJun 10, 2019 11:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Tesla workers examine a Model S used for training and tool calibration at the company's factory in Fremont

By Alexandria Sage

SAN FRANCISCO (Reuters) - Tesla (NASDAQ:TSLA) Inc’s rankings at two high-profile job websites have declined, suggesting that job dissatisfaction at the electric car company is intensifying amid layoffs, strategy shifts and executive turnover.

Tesla placed 16th on LinkedIn's annual "Top Companies 2019" list published in April, compiled from billions of actions taken by its over 600 million users that indicate job interest and demand. It held the fifth and sixth spots in 2018 and 2017, respectively.

At jobs site Glassdoor, Tesla's overall company rating fell to 3.2 out of 5.0 stars based on reviews written in the first quarter from a high of 3.6 in 2017, according to historical data compiled by Glassdoor at Reuters' request. The average rating of the nearly 1 million employers reviewed on the site is 3.4.

In the first quarter, Elon Musk's CEO approval rating dropped to 52% from 90% in 2017.

Tesla's "recommend to a friend" rating fell to 49% in the first quarter from a high of 71% two years prior, the Glassdoor data showed.

Similarly, Glassdoor ratings for culture and values, career opportunities, senior leadership and six-month positive business outlook all fell. Only "work-life balance" and "compensation and benefits" remained static. No metrics improved.

The reviews are anonymous and Glassdoor says it does not verify identities or employment status.

Told of the rankings, a Tesla spokeswoman said the company remains a highly sought after employer. Tesla received over half a million job applications in 2017 and again in 2018 and expects to exceed that figure in 2019, she said.

Tesla also made Forbes list of "Most Innovative Companies" last year. Employer branding specialist Universum ranked Tesla and sister company SpaceX as the most attractive employers for engineering students.

As Musk prepares to talk up future growth at Tesla's annual shareholder meeting on Tuesday, the car maker is weathering a difficult period. Two years after the official launch of its Model 3 sedan, intended to catapult Musk's company to volume car producer status, Tesla is still struggling to reach its targets.

Tesla lost $700 million in the first quarter and saw a drop in vehicle deliveries, raising concerns about consumer demand and shipping logistics.

Wall Street is also souring on Tesla, with the company's shares falling 39% so far this year. Analysts have cut their ratings after the company announced lower deliveries and worries over the company's direction.

Of the two current and 16 former employees who spoke with Reuters since January, some praised Musk as a visionary but said his management style and the exodus of executives have left a void in leadership.

Tesla's chief financial officer retired in January and the company's top lawyer left in February after two months on the job. The head of communications is leaving this month. Those positions have been filled.

Tesla had 48,817 full-time employees at the end of 2018, according to SEC filings, after a 9% headcount reduction throughout the company announced in June 2018. Tesla announced it would lay off another 7% of its workforce in January.

In a company-wide email last month, Musk said all expenses would be reviewed, including by him, adding that current spending could quickly eat up Tesla's recent capital raise. Tesla declined to comment on whether Musk was signing off on each new hire.

Tesla has 1,100 jobs posted on its website, down from 2,510 in January, according to statistics provided by job-post scraping site Thinknum. Many show vacancies since October.

Tesla said job postings differ from jobs open, as one posting could represent multiple openings.

(This story corrects paragraph 14 to show Tesla has a global communications director.)

Employees sour on Tesla amid cost-cutting, layoffs
 

Related Articles

4 Warren Buffet Stocks to Own for the Rest of 2021
4 Warren Buffet Stocks to Own for the Rest of 2021 By StockNews - May 17, 2021 1

Warren Buffet has made his name by betting on fundamentally-sound “value” stocks with immense long-term growth potential. He advocates holding stocks for a prolonged...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email