Tesla seeking to conduct massive layoffs, employees senses the possibility

Employees at Tesla Inc. are preparing for the possibility of layoffs after managers were asked to confirm whether every role is essential.

In recent days, US supervisors were required to evaluate their deputies’ roles in a binary manner. According to several of the sources, Tesla cancelled some employees’ biannual performance reviews and then sent out a single-line query for each job.

The request aligned with Elon Musk’s focus on reducing expenses during a noticeable lull in Tesla’s sales expansion. The CEO is renowned for treating the businesses he leads harshly; towards the end of 2022, he offered Twitter employees a deadline by which they had to adhere to his “hardcore” philosophy or quit.

Since 2020, Tesla’s employment has more than doubled, with over 140,000 employees worldwide as of the end of last year.

During Tesla’s quarterly results call last month, Elon Musk, 52, stated that the business was “between two major growth waves”: the first coming from the launch of the Model 3 and Y, and the second from a more affordable car that is anticipated to arrive late in the following year.

With a capital expenditure budget of over $10 billion for this year, Tesla has indicated that it will be allocating adequate funds toward the next-generation electric vehicle as well as other growth efforts.

“This is a constant exercise, and we just have to chase down every penny possible,” Chief Financial Officer Vaibhav Taneja mentioned while addressing the earning call on Jan. 24. “We have a strong team which is hyper-focused on this.”

In the past, Tesla has occasionally laid off workers while still hiring for specific positions. On its website, the corporation lists hundreds of job openings.