Tesla to freeze hiring, lay off employees next quarter [View all]
Source: Reuters
Dec 21 (Reuters) - Another wave of layoffs are coming at electric-car maker Tesla Inc (TSLA.O) in the next quarter, news website Electrek reported on Wednesday, citing a source familiar with the matter. Tesla is also going to freeze hiring, according to the report. The company did not immediately respond to a Reuters request for comment. Shares of Tesla rose 1% to $139.25 in trading before the bell.
The reported move comes at a time when Tesla investors have raised concerns over Chief Executive Elon Musk's distraction with managing Twitter, the social media platform he bought for $44 billion in October. Moreover, Tesla analysts have also cut their price targets on the stock worried that weakness in demand from China will weigh on the EV maker's deliveries next year. Musk in June said Tesla would reduce its salaried workforce by roughly 10% over the next three months.
Read more: https://www.reuters.com/business/autos-transportation/tesla-freeze-hiring-lay-off-employees-next-quarter-electrek-2022-12-21/
Original article from Electrek
Tesla (TSLA) has told employees that it is implementing a hiring freeze and confirmed that another wave of layoffs is coming next quarter, according to a source familiar with the matter. In June,Elon Musk asked Tesla executives to "pause all hiring" and cut 10% of staff. The CEO has given different reasons to different people for the layoffs, including that he has a "very bad feeling" about the economy. Tesla has been growing fast over the years, and that often results in hiring inefficiencies that eventually lead to rounds of layoffs like this one.
The "hiring pause" was more worrisome as Tesla has several programs growing fast, and it needs to hire thousands of people at new factories in the US and Germany. However, Tesla quickly reversed the hiring pause and started growing its hiring again during the second half of the year. Now Electrek has learned that Tesla is implementing a new hiring freeze and plans further layoffs, according to a reliable source familiar with the matter.
Tesla has communicated to some employees that it is stopping hiring for now. On top of the hiring freeze, Tesla also said that teams will be expected to make layoffs during the first quarter of 2023. It's not clear how extensive the hiring freeze will be as Tesla is still planning to expand in some manufacturing locations. No further details were made available at this time. The moves come as Tesla's stock has been falling all year despite the company's financials hitting new records virtually every quarter.
https://electrek.co/2022/12/21/tesla-tsla-hiring-freeze-layoffs/
= new reply since forum marked as read