Tesla layoffs continue for the 4th week in a row, plans to fire 10% of workforce

Published May 6th, 2024 - 07:01 GMT
Tesla layoffs continue for the 4th week in a row, plans to fire 10% of workforce
Tesla Service Center in Fort Myers, Florida. (Shutterstock)

ALBAWABA - More workers at Tesla went on LinkedIn and other websites reporting getting informed that their employment at the American carmaker was coming to its conclusion, according to Business Insider, as the company's tough wave of layoffs approaches its fourth consecutive week.

Over seven Tesla employees announced their layoffs on LinkedIn, however, the complete number of layoffs is still unclear, with one employee writing “After watching my team gradually slimmed down week after week since mid-April, I received the dreaded 'Hello Employee' email this Sunday afternoon.”

Workers have kept on receiving alerts of layoffs in waves following Elon Musk's original announcement on April 14 that Tesla would reduce more than 10% of its personnel, which counts for over 6,700 employees across its locations in Texas, California, Nevada and New York according to Yahoo, explaining the decision was due to “duplication of roles and job functions in certain areas,” in an internal memo.

Musk has also went on X (formerly Twitter) to note that Tesla needs to be reformed following each five-year period, while sending internal emails to employees detailing that if executives don't clearly satisfy the superb, essential and reliable criteria, staff members working under them would lose their jobs, The Verge reports.

Musk had privately privately stated his intention to fire no less than 20 percent of the company's staff due to a significant decline in quarterly car deliveries, Bloomberg claims.

As the market for electric cars continues to decline due to high interest rates, Tesla has been facing challenges from declining sales and an increasing pricing war among manufacturers, causing the company to focus on its Full Self Driving (FSD) Software, which has been clearing hurdles in China recently.
 

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