#TeslaLayoffs #ElectricVehicleSlump #TeslaMasterPlan
Tesla Downsizes by at Least 14% This Year Amid Layoffs and Sales Slump
Tesla has significantly downsized its workforce this year, with internal records suggesting the company now employs around 121,000 people, including temporary workers. This represents a reduction of at least 14% from the 140,473 employees reported at the end of 2023.
CEO Elon Musk announced in April that Tesla would be cutting more than 10% of its global workforce. The layoffs, which were already underway at the time of the announcement, are part of the company's efforts to reorganize and address inefficiencies that have developed over the past few years.
Musk has stated that Tesla had reached an inefficiency level of 25% to 30% after a period of rapid growth starting in 2019. The company is now focusing on the next phase of growth, which includes a comprehensive review to provide stock options grants for exceptional performance.
The downsizing comes amid a slump in Tesla's sales, with the company reporting a 9% drop in annual revenue for the first quarter, the largest decline since 2012. The broader auto industry has also seen a slowdown in electric vehicle sales growth this year.
Tesla shares have been impacted by the sales decline, falling 27% this year while the Nasdaq has risen 18%. The company is expected to publish a new "Master Plan" and reveal its design for a "dedicated robotaxi" in the coming months.
Original Article: https://www.cnbc.com/2024/06/21/tesla-has-downsized-by-at-least-14percent-this-year-internal-number-shows.html
Leave a Reply