Elon Musk’s Tesla plans massive global workforce layoffs
According to reports from technology publication Electrek on Monday, CEO Elon Musk issued a company-wide email over the weekend, revealing the impending layoffs. In the internal memo, Musk described the decision as “difficult,” stressing that the staff cuts are aimed at streamlining operations to foster innovation and prepare for future growth phases.
Tesla’s move comes on the heels of a recent decline in vehicle deliveries during the first quarter, which is the company’s first such decline in nearly four years and falls short of market expectations. With its quarterly earnings report scheduled for April 23, Tesla faces increasing pressure to address the factors contributing to its declining performance.
In a press release, Tesla attributed the decline in deliveries to multiple factors, including weak demand for electric cars, an arson attack at its factory near Berlin, and supply chain disruption resulting from the conflict in the Red Sea region.
Reports of impending layoffs have spread in recent months, with indicators such as Tesla directing managers to identify key team members, suspending some stock awards, and canceling annual employee reviews, sources said.
As Tesla overcomes these challenges, investors and industry analysts await further developments and insights into the company’s strategies to revitalize its performance in the face of evolving market dynamics.
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