Tesla Layoff: 15,000 Workers To Be Affected

Tesla Inc (NASDAQ: TSLA) is in focus today following a report that it plans on lowering its headcount by more than 10%.

 

How many employees will Tesla lay off?

The electric vehicles behemoth recently asked managers to cancel annual reviews of a bunch of employees, halt stock rewards, and spot critical team members, as per Electrek.

All in all, about 15,000 of its workers will be affected by the layoff. The internal memo that Electrek cited today reads:

As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity.

Shares of Tesla Inc that Wall Street currently rates at “hold” are down well over 30% versus the start of this year at writing.

 

Tesla will report earnings next week

Tesla is yet to officially comment on the report on Monday. The last time it laid off employees was in February of 2023.

Earlier this month, $TSLA came in well below Street estimates for quarterly deliveries as Invezz reported here. It is scheduled to report its full earnings report on April 23rd. Consensus is for it to earn 36 cents a share versus 73 cents per share a year ago.

The news arrives shortly after the multinational withdrew from plans of launching an affordable Tesla. It did, however, commit to revealing the much-awaited robotaxi on August 8th.

But the Nasdaq-listed firm will likely face intense competition in autonomous taxis as well considering China has already announced plans of mass producing them from 2025 (read more).


More By This Author:

Is Coupang Stock Worth Buying After WOW Membership Price Hike?
JPMorgan Q1 Earnings: Here’s What You Should Expect
Rivian Stock Sunk To An All-Time Low On Thursday

Disclosure: Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.