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Tesla staff reportedly bracing for possible layoffs, stock gains

Published 02/07/2024, 08:54 AM
Updated 02/07/2024, 08:57 AM
© Reuters Tesla (TSLA) staff reportedly bracing for possible layoffs, stock gains

Tesla Inc. (NASDAQ:TSLA) employees are preparing for possible layoffs after managers were instructed to evaluate the necessity of each employee's role, Bloomberg News reported on Wednesday.

TSLA was up 3% ahead of the market open.

In recent days, US managers at Tesla were tasked with determining whether the roles of their team members were essential, Bloomberg report stated, a move that came after the electric vehicle (EV) giant halted some of its employees' semiannual performance evaluations.

This decision aligns with CEO Elon Musk's focus on reducing costs amid a noticeable deceleration in Tesla's revenue growth.

Musk, known for his rigorous management style across his ventures, had previously set a tough stance at Twitter in late 2022, offering employees the choice to adhere to a "hardcore" work ethic or exit the company.

Since 2020, the company has significantly expanded its workforce, concluding the previous year with over 140,000 global employees, marking an eightfold increase since 2016, just before the launch of the Model 3 sedan.

Despite a nearly 10% growth in headcount last year, Tesla executed targeted reductions.

For instance, in February 2023, the company laid off numerous Buffalo, New York employees working on data labeling for its Autopilot system, a move Tesla stated was not related to any unionization efforts announced that same week.

Latest comments

Higher stock prices means Elon will save the Boer. The defective batteries will the be sent to a landfill in SA.
Tech at ath thanks to this and the ripple pump to other Mag7s?
Instead of replacing batteries they are tossed in the landfill
Told you so, not a growth company any more.
Tesla we peons think as a car company...really is more than that. There will be growth but maybe in other areas. Ebb and flow in the capitalist system as it responds to changes.
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