Things seem a bit tumultuous at Tesla lately. The company has been in the headlines for ongoing layoffs, and now it has completely halted hiring in North America. But what caused this sudden stop? Here are the reasons…
Why did Tesla stop new hires?
Tesla’s job listings, which had over 3,400 postings last month, now only list three positions. These three are for a development program offering training in Texas, California, or Nevada, with the opportunity to work as a full-time production associate at a Tesla factory.
On LinkedIn, there are a total of 326 job postings, most of which are in China. The only job listing in the U.S. is also related to this development program. In a letter to employees last month, Elon Musk mentioned that the company’s rapid growth had led to unnecessary accumulations in some roles and functions.
A serious decrease was observed in the sales of Tesla cars. Tesla's electric vehicles produced in China are selling less than last year.
Musk emphasized the need to reduce hiring and increase cost savings and productivity across all areas as preparation for the company’s next phase of growth. Unfortunately, it is estimated that at least 14,000 employees have been laid off in this process. Musk expressed regret for having to make these tough decisions but stated that they were necessary for the future of the company.
Tesla’s halt in hiring and large-scale layoffs indicate that the company will be adhering to stricter financial discipline in the coming period. This may be a challenging time for Tesla employees, but it can also be seen as a step towards a more efficient and focused organizational structure. Regardless, under Elon Musk’s leadership, Tesla is sure to continue making headlines. What do you think about this situation? Feel free to share your thoughts in the comments section below.
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