Tesla reportedly planning more layoffs as company inventory piles up
Despite record delivery figures, the company could also freeze hiring.
Tesla plans more layoffs and another hiring freeze. According to a source from Electrek, the company has suspended hiring for the time being and teams will have to lay off some people in the first quarter of 2023.
The extent of the layoffs and hiring freeze is not yet clear. However, Tesla is trying to increase the workforce of its manufacturing plants. Reports suggest that the company will announce plans to build another Gigafactory in Mexico in the coming days. Tesla does not have a communications department that can be contacted for comment.
Automaker CEO Elon Musk said in June that Tesla would see a net reduction of 3.5% in its workforce over the next few months. A series of layoffs around this time reportedly focused on salaried employees, including hundreds of Autopilot team workers.
Even though Tesla delivered a record number of its electric vehicles last quarter, the company's stock price has fallen about 65% this year and 22% this month alone. Musk blamed the fall in stocks on the Federal Reserve's rate hikes.
Like other companies, Tesla has been dealing with an economic downturn in recent months. However, he had to deal with the added wrinkle of Musk's protracted takeover of Twitter and then his chaotic day-to-day running of that company (which included mass layoffs).
Some Tesla investors have been concerned that Musk is preoccupied with Twitter and diverting his attention from the automaker, causing them to sell their shares. He said Tuesday night that he would step down as CEO of Twitter once he could find someone to replace him.
Some suggest demand for Tesla vehicles has slowed, with some people canceling pre-orders and leases amid Musk's calamitous reign on Twitter. As Electrek notes, Tesla has even taken the rare step of offering discounts on its electric vehicles in certain markets.
Many other tech and auto companies have made layoffs and/or frozen or slowed hiring this year due to a general market downturn and fears of a recession. Among them are Rivian, Stellantis, Meta, Apple, Amazon, Snap, Roku and Peloton.
Despite record delivery figures, the company could also freeze hiring.
Tesla plans more layoffs and another hiring freeze. According to a source from Electrek, the company has suspended hiring for the time being and teams will have to lay off some people in the first quarter of 2023.
The extent of the layoffs and hiring freeze is not yet clear. However, Tesla is trying to increase the workforce of its manufacturing plants. Reports suggest that the company will announce plans to build another Gigafactory in Mexico in the coming days. Tesla does not have a communications department that can be contacted for comment.
Automaker CEO Elon Musk said in June that Tesla would see a net reduction of 3.5% in its workforce over the next few months. A series of layoffs around this time reportedly focused on salaried employees, including hundreds of Autopilot team workers.
Even though Tesla delivered a record number of its electric vehicles last quarter, the company's stock price has fallen about 65% this year and 22% this month alone. Musk blamed the fall in stocks on the Federal Reserve's rate hikes.
Like other companies, Tesla has been dealing with an economic downturn in recent months. However, he had to deal with the added wrinkle of Musk's protracted takeover of Twitter and then his chaotic day-to-day running of that company (which included mass layoffs).
Some Tesla investors have been concerned that Musk is preoccupied with Twitter and diverting his attention from the automaker, causing them to sell their shares. He said Tuesday night that he would step down as CEO of Twitter once he could find someone to replace him.
Some suggest demand for Tesla vehicles has slowed, with some people canceling pre-orders and leases amid Musk's calamitous reign on Twitter. As Electrek notes, Tesla has even taken the rare step of offering discounts on its electric vehicles in certain markets.
Many other tech and auto companies have made layoffs and/or frozen or slowed hiring this year due to a general market downturn and fears of a recession. Among them are Rivian, Stellantis, Meta, Apple, Amazon, Snap, Roku and Peloton.
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