TESLA LAYOFFS CONTINUE! ELON MUSK-OWNED EV CAR MAKER TO CUT 10 PC OF GLOBAL WORKFORCE

Tesla Layoffs: Elon Musk owned electric vehicle giant Tesla has initiated layoffs in its software, service, and engineering departments, as reported by tech publication Electrek on Monday. This development follows Tesla's recent decision to disband its electric vehicle charging department and reduce its global workforce by over 10 per cent.

According to the media report, employees at Tesla received emails over the weekend informing them of the layoffs as part of broader workforce reductions.

Tesla, whose shares saw a rise of over 1 per cent, has not yet responded to requests for comment from Reuters regarding the reported layoffs.

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Tesla Layoffs

Last month, Tesla announced plans to lay off more than 6,700 employees across its various locations in Texas, California, Nevada, and New York.

Tesla has been confronting challenges such as declining sales and heightened competition in the electric vehicle market, exacerbated by increased interest rates dampening consumer adoption.

Strategic Focus of Tesla

The company aims to concentrate its efforts on autonomous driving software, the development of robotaxis, and the advancement of its humanoid robot, Optimus. Analysts speculate that Tesla may be reducing spending in certain departments to allocate resources to these projects and preserve cash.

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Financial Implications and Job Cuts

Tesla anticipates incurring more than USD 350 million in costs during the second quarter due to the extensive layoffs. Notably, the job cuts have also seen the departure of several top executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.

In April, Tesla disclosed its intentions to introduce "new models" utilizing existing platforms and production lines, a strategic move aimed at optimizing capital expenditures and enhancing operational efficiency.

2024-05-07T10:01:46Z dg43tfdfdgfd