Tesla announced to Gigafactory Texas employees that it can shorten Cybertruck production shift amid rumors that it is preparing a round of layoffs.
We received several reports today from Tesla employees hearing rumors of a crucial round of layoffs happening this week at the corporate.
Some of them are talking about layoffs as high as 20% of the workforce, which might mean tens of hundreds of employees.
The rumors come after Tesla angered some employees with delayed performance reviews and price bumps earlier this 12 months.
They also come after Tesla had quite a disastrous quarter with a year-over-year reduction in deliveries, which got here way below even essentially the most pessimistic analyst estimates.
As we noted, Tesla had some good excuses regarding production taking place this quarter, which might also affect deliveries and the logistics of getting cars to customers, but it surely didn’t have a good explanation for adding 46,000 vehicles to its inventory in a single quarter.
The automaker has been consistently adding cars to its inventory over the past 12 months and CEO Elon Musk has been mostly blaming the situation on pricing and high rates of interest.
Tesla has been expected to reduce production to adjust for what appears to be clear lower demand.
Last month, the automaker reduced production at Gigafactory Shanghai, its most efficient factory.
Today, it was reported that Tesla shortened its Cybertruck production shifts at Gigafactory Texas.
Tesla wouldn’t be the one big tech company doing layoffs. Several other major firms have recently announced layoffs, including Apple – although to a much lesser degree than what is being rumored now.
Musk has recently expressed concerns in regards to the global economy, and he has slowed things down at Tesla because of it, just like the GIgafactory Mexico project, for instance.
Electrek’s Take
Tesla has often implemented yearly waves of layoffs, which the automaker has attributed to hiring inefficiencies amid rapid headcount growth and getting rid of underperformers.
However, if the rumors proved to be true, this one feels different. It comes after an obviously very bad quarter and comes with Tesla reducing production capability.
Also, Tesla hasn’t been growing its headcount as much and as fast because it used to – making it harder to blame it on rapid growth.
Whether the rumors are true or not, they’re clearly currently spreading at Tesla, and that’s stressful for workers. Job insecurity is not fun. I wish the people at Tesla one of the best straight away.
Credit : electrek.co