A former Tesla director is reacting to the stock’s jump after Elon Musk warned of a production slowdown in 2024.
Electric vehicle giant Tesla is reportedly considering which positions are absolutely necessary, raising concerns among employees that layoffs at the company are imminent.
To quote someone close to me, reported by bloomberg Tesla on Wednesday asked U.S. executives to assess whether each of their subordinates’ jobs are “critical” to its operations, leaving employees upset about possible layoffs.
Tesla’s Model 3 sedan is displayed next to the Model X SUV at the China International Services Trade Fair in Beijing on September 2, 2023. (Florence Lo/Reuters Photo)
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 187.58 | +2.48 | +1.34% |
Tesla did not immediately respond to FOX Business’ request for comment on the report. The company will have over 140,000 employees worldwide as of the end of 2023.
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The report comes despite price cuts already hurting margins at the world’s most valuable automaker and fueling investor concerns about weak demand and Chinese competition. The announcement comes after the company’s CEO warned that sales growth would slow this year.
Tesla CEO Elon Musk (Joel Saget/AFP/File/Getty Images)
Rumors about possible Tesla layoffs come as the pace of layoffs in the U.S. accelerated at the beginning of the year, indicating the labor market is beginning to deteriorate in the face of ongoing inflation and high interest rates. .
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A recent report from executive outplacement firm Challenger, Gray & Christmas found that companies plan to cut 82,307 jobs in January, a significant 136% increase from the previous month. , the second highest level ever.
The president of Zuma Global has responded to recent reports on the Big Money Show revealing that the technology company will cut 32,500 jobs in 2024.
“After a quiet fourth quarter, a wave of layoff announcements hit U.S.-based companies in January,” said Andy Challenger, senior vice president at Challenger, Gray & Christmas. . The layoffs were driven by “broader economic trends and a strategic shift towards increased automation and AI adoption in a variety of sectors, but in most cases companies are looking to cut costs as the primary driver of headcount reductions.” I’m pointing it out.”
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Amazon, American Airlines, Citigroup, Google and UPS are among the companies that have announced job cuts so far this year, along with Tesla rival Ford.
FOX Business’ Megan Henney, Daniella Genovese and Reuters contributed to this report.
