New major purge coming from a North American tech heavyweight? After Amazon, Meta and Netflix, Tesla is expected to be the next to launch a wave of layoffs. The electric car maker has informed its employees that it intends to freeze hiring and lay off some of its employees during the first quarter of 2023, according to a source close to the matter, cited by US media. Electrek.
The extent of this cut is not yet known, as Tesla will ramp up its new factories in Austin (Texas) and Berlin (Germany). Last June, Tesla’s boss assured that these new production sites “lost billions of dollars” due to difficulties in obtaining battery power and port issues in China.
Elon Musk wanted to lay off 10% of the workforce
Back then there was already talk of dismissing employees. Elon Musk had told the company’s executives that he wanted to pause recruiting and lay off 10% of the company’s staff, or nearly 10,000 employees, due to “very bad feeling” on the economy. “How can we keep factories running to pay people and not go bankrupt?”, he asked Tesla Owners of Silicon Valley. This would be a brutal stop for Tesla, which went from 48,000 to 93,000 employees between 2019 and 2021, according to Statista.
Although the current economic context does not encourage optimism, it therefore seems that Elon Musk has decided to take action, after already at the end of the year he distinguished himself by forcing half of the employees at Twitter to make their boxes after acquiring the social network. Very busy managing his new toy, even as he announced this week that he will step down as head of Twitter, the multi-billionaire has raised concerns among some shareholders.
Rebellion rumbles among Tesla shareholders
In their eyes, the quirky entrepreneur spreads himself a little too much in his many activities, especially since he has continued to sell billions of dollars of Tesla shares to finance the takeover of Twitter ($44 billion) . At the same time, the electronic car manufacturer’s stock fell sharply.
Tesla’s market value has thus collapsed by 40% in the past two months, and even more than 60% back to April last year. What annoys the shareholders of the company, who openly begin to criticize the attitude of the manager… “Elon left Tesla and Tesla doesn’t have an acting CEO”even Leo Koguan, a major Tesla stock portfolio holder, tweeted: “Are we just Elon’s silly bag holders? A Tim Cook-type executive is needed.” In this context, the start of the year 2023 promises to be explosive for Elon Musk.