According to the latest news, Elon Musk, CEO of the American electric car giant Tesla, has sent an email to all employees announcing that Tesla will lay off more than 10% of its global workforce. The news about Tesla layoffs has been circulating in the market since February. At that time, Tesla postponed performance evaluations for some employees, which was interpreted by some as a precursor to layoffs. Recently, rumors about the company's large-scale layoffs have intensified, with some tech media outlets speculating about a possible 20% reduction in staff over the weekend.
According to today's news from Phoenix Technology, Tesla sent an email to all employees on Monday announcing a workforce reduction of 10%. Tesla CEO Elon Musk emphasized, "It is extremely important to examine all aspects of the company to reduce costs and increase productivity. There is nothing I dislike more than layoffs, but it must be done. This will enable us to be lean, innovative, and eager for the next growth cycle."
Regarding the future direction of the company's development, Musk said, "We are exploring some of the most revolutionary technologies in the automotive, energy, and artificial intelligence fields."
This is the fifth major layoff at Tesla since 2017, when the company reduced its workforce by 2%. Subsequently, the company's workforce decreased by 9% in 2018, 7% in 2019, and 3% in 2022. At the beginning of 2024, Tesla had approximately 140,000 employees worldwide.
In addition to layoffs, Tesla has made new changes in its operational management to reduce costs and increase efficiency. On Sunday (the 14th), Tesla's super factory in Austin, USA, leaked a document stating that the production line at the factory had reduced its production hours, from 12-hour shifts day and night to 11 hours during the day and 10.5 hours at night, which officially took effect on Monday.
Demand dilemma According to US media reports, workers at the Austin factory used to work shifts from 6 am to 6 pm, and from 6 pm to 6 am. The new memorandum states that the new shift hours will be from 6 am to 5 pm during the day, and from 6 pm to 4 am at night. Employees had previously stated that the new schedule had not yet been implemented, and it was unclear whether Tesla would apply the new schedule to other production lines or factories. The Austin factory mainly produces the Cybertruck and Model Y, and also bears the responsibility of developing the next generation of vehicles.
From adjusting work schedules to issuing layoff notices, Tesla has clearly been exposed to significant impacts from market weakness. Earlier this month, Tesla's vehicle deliveries for the first quarter were significantly lower than Wall Street's expectations, totaling only 386,810 vehicles, down 8.5% year-on-year and more than 20% sequentially.
The challenging delivery situation has further convinced the market that there are some issues on Tesla's demand side, which is inconsistent with Musk's statement in January that "this is limited production, not limited demand." In addition, Robert W. Baird analyst Ben Kallo warned that Tesla's global deliveries in the second quarter are also not optimistic and may experience another year-on-year decline, with deliveries expected to be 444,510 vehicles, down 4.6% year-on-year.
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