Internal sources at Tesla (NASDAQ:TSLA) have reporetdly claimed that the company has sent a recent directive to its managers. The directive reportedly asked managers to conduct an assessment of whether each employee’s role is critical, igniting concerns about potential job cuts in the electric vehicle maker’s workforce.
The single-line inquiry for each job, which was reported by Bloomberg News, seems to align with CEO Elon Musk’s efforts to streamline Tesla’s operations and optimize financial performance this year. During Tesla’s Q4 and FY 2023 earnings call, executives warned that volume growth would be down this year amidst efforts to develop and release the next-generation platform.
Tesla’s workforce has witnessed a significant expansion since 2020, nearly doubling in size to over 140,000 employees worldwide. In 2016, a year before the Model 3 started its deliveries, Tesla had just about 17,782 workers. It should also be noted that Tesla’s overall workforce grew by about 10% in 2023 as the company attempted to achieve its ambitious goal of hitting 1.8 million vehicles during the year.
Tesla, for its part, has not issued a comment about Bloomberg‘s claims. However, the news appears to have had a positive impact on the company’s stock price, with shares climbing as much as 3% during Wednesday’s pre-market. TSLA stock is up 1.18% to $187.24 per share as of writing.
Elon Musk acknowledged during Tesla’s Q4 and FY 2023 earnings call that the company is currently between “two major growth waves.” Tesla’s first growth wave was from the Model 3 and Model Y, and the company is expecting its next growth wave to be pushed by the introduction of the next-generation platform. Tesla’s next-generation EV is expected to be more affordable, and it has a potential release date of late 2025.
Tesla has adopted a strategic approach to workforce management over the years, implementing periodic layoffs while simultaneously recruiting for specific roles across the globe. The company currently has hundreds of active job listings for various positions worldwide on its Careers page.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.