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Tesla Plans To Lays Off More Than 10% of Its Workforce Globally

Tesla Lays Off More Than 10 Percent of Workforce

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Tesla Plans to Laying off More Than 10% of Its Workforce Globally

The leading electric vehicle maker Tesla is preparing for a massive cutting of about 10% of employees in their wings across the globe. Facing a deep fall in their sales in the last financial year compels the higher authority of Tesla to take such a harsh decision. 

The greatest turmoil is going to happen this month as CEO Alon Musk announced a big lay-off of about 10 % in their sales executive to cut costs. The company faces tough competition in the electric car market and faces a steep decline in the sales of cars in the last financial quarter.

Currently, Tesla has about 140,473 employees globally, meaning about 14,000 employees are going to lose their jobs by the end of the year. 

The news first flashed on the electric vehicle website Electrek and was confirmed by officials, it’s just a reminder of the cut-off. As per the latest report given by reliable sources, the layoff is going to happen this month.

Despite the deep fall in sales, the share prices of Tesla have been reduced in the global market.

The CEO Elon Musk explained partially “We have made this difficult decision to mitigate the number of employees to cut costs”.

At the beginning of the week, a copy of an email was sent to all the employees of Tesla stating that “As we prepare the company for the next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” the CEO Elon Musk said. He added, “There is nothing I hate more, but it must be done”.

After the release of the email, senior Vice President Drew Baglino who has played a crucial role in the rise of the company from the beginning to taking to this level of being a leader in the electric car maker, has resigned immediately.

He stated in his Twitter post “I made the difficult decision to move on from Tesla after 18 years yesterday”. He is one of the three chief management staff in the team of Elon Musk who has contributed well to the company, now blamed for the recent issues in Tesla, one of the top officials of Tesla Gary Black confirmed. He was the managing partner of the “Future Fund” an investment firm.  He again added on his Twitter post “Someone has to take the fall for the sharp deceleration in deliveries growth, near record inventories, and declining margins and it wasn’t going to be Elon”.

As Tesla reported, we sold 386,810 vehicles in the first quarter of the year from January to March, which is 9 % less than the previous year, and witnessed 423,000 sales in electric cars as the competition got tough globally. The recent price cuts are not able to entice more buyers in the first phase of the year.   

“Tesla and Elon Musk consistently focus on cutting its workforce who are underperforming in the company to reduce costs” the executive of Rex Shares, Mr. Acheychek stated.

In which sector the layoff is going to happen Musk does not revealed yet.  Many employees of Tesla come from the four sectors of car factories Fremont, Calif, Austin, Texas, Shanghai and near Berlin.  

Besides this, Tesla also has a factory in Buffalo that produces charging equipment and a factory near Reno, Nev that makes batteries.

Elon Musk plans to change the subject with the upcoming Robotaxi event on August 8, which may entice investors to invest in the company.

The decline is due to the updated version of the Model 3 sedan at its Fremont, California Factory and the excessive cost of shipping in the Red Sea. The Arson Attack also lead to the shutdown of its German Factory. 

Final World

However, many investors anticipate that Tesla will get back on track by launching a new Model car that may cost up to $25000 at the beginning of the next year making it more affordable to an increased number of people, and hence sales will likely to boost next year. 

Source – https://mediapract.com/tesla-lays-off-more-than-10-percent-workforce/

Also Read – https://emperiortech.com/

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