Tesla staff reportedly bracing for possible layoffs, stock gains

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Tesla Inc. (NASDAQ:TSLA) employees are preparing for possible layoffs after managers were instructed to evaluate the necessity of each employee’s role, Bloomberg News reported on Wednesday.

TSLA was up 3% ahead of the market open.

In recent days, US managers at Tesla were tasked with determining whether the roles of their team members were essential, Bloomberg report stated, a move that came after the electric vehicle (EV) giant halted some of its employees’ semiannual performance evaluations.

This decision aligns with CEO Elon Musk’s focus on reducing costs amid a noticeable deceleration in Tesla’s revenue growth.

Musk, known for his rigorous management style across his ventures, had previously set a tough stance at Twitter in late 2022, offering employees the choice to adhere to a “hardcore” work ethic or exit the company.

Since 2020, the company has significantly expanded its workforce, concluding the previous year with over 140,000 global employees, marking an eightfold increase since 2016, just before the launch of the Model 3 sedan.

Despite a nearly 10% growth in headcount last year, Tesla executed targeted reductions.

For instance, in February 2023, the company laid off numerous Buffalo, New York employees working on data labeling for its Autopilot system, a move Tesla stated was not related to any unionization efforts announced that same week.

Source: Investing.com