Electric car giant Tesla is cutting 14,000 jobs due to slowing sales.
Billionaire Elon Musk’s eco-friendly electric car company has announced layoffs, as reported by Elektrek.
Musk cuts staff via memo
Elon Musk reportedly contacted the staff and the memo made it to the mainstream media. Elektrek published the memo compiled by Musk that expected the automaker to cut 10% of its workforce.
“As part of this commitment, we conducted a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it has to be done. This will allow us to be lean, innovative and hungry for the next growth phase cycle,” Musk reportedly told the fired staff.
Tesla employs 140,473 people according to the company’s annual report, and this workforce has seen signs of potential cuts for a while.
Musk’s statement would end flatly: “For those who remain, I would like to thank you in advance for the difficult work that remains to be done. We are developing some of the most revolutionary technologies in automotive, energy and artificial intelligence. As we prepare the company for the next phase of growth, your determination will make a huge difference in getting us there.”
As reported by Bloomberg, Tesla has canceled stock bonuses and performance reviews over the past year. Merit-based stock awards were canceled, but employees saw a pay increase to address the cost-of-living crisis. This is despite Musk’s controversial statements at the Deal Book summit last November. In particular, stock options were mentioned.
Musk said: “The challenge is: How do we retain great people to do the hard work of building cars when they have, say, six other opportunities that they can do easier?
“We certainly do our best to ensure everyone’s prosperity. Let’s give everyone stock options.”
Musk also publicly entered bidding wars with rival artificial intelligence (AI) companies this month. We reported that the billionaire turned to X to talk about the need to hire high-profile experts with huge salaries to stay ahead in the competition to become America’s leading provider of artificial intelligence solutions.
So times have certainly changed for the automaker, with the man featured in the Top 10 of the Forbes Rich List having bungled his engagement with “everyone” at Tesla in a matter of months.
Tesla hopes to put things back on the road to recovery when its quarterly earnings report comes out on April 23.
Image: ideogram
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