Tesla has announced to Gigafactory Texas employees that it will shorten its Cybertruck production turnaround amid rumors that it is preparing for a round of layoffs.
We received several reports today from Tesla employees who have heard rumors of a significant round of layoffs happening this week at the company.
Some of them are talking about laying off workers of up to 20% of the workforce, which means tens of thousands of employees.
The rumors come after Tesla angered some employees by delaying performance reviews and raising prices earlier this year.
It also comes after Tesla had a very disastrous quarter with year-over-year deliveries falling well below even the most pessimistic analyst estimates.
As we noted, Tesla had some good excuses regarding the drop in production this quarter, which will also impact deliveries and logistics of getting cars to customers, but it didn't have a good explanation for adding 46,000 vehicles to its inventory in one quarter.
The automaker has been steadily adding cars to its inventory over the past year, with CEO Elon Musk mostly blaming prices and high interest rates.
Tesla was expected to reduce production to adjust to what appears to be an apparent decline in demand.
Last month, the automaker reduced production at its Gigafactory in Shanghai, its most productive plant.
Today, it was reported Tesla has shortened Cybertruck production shifts at its Gigafactory in Texas.
Tesla won't be the only big tech company to lay off workers. Several other major companies have recently announced layoffs, Including Apple -Although to a much lesser extent than is rumored now.
Musk recently expressed concerns about the global economy, and has slowed things down at Tesla because of that, like the GIgafactory Mexico project for example.
Take Electric
Tesla has often carried out annual waves of layoffs, which the automaker has attributed to inefficient hiring amid rapid headcount growth and the shedding of poor performers.
However, if the rumors prove true, this looks different. This comes after a very bad quarter and comes as Tesla cuts production capacity.
Tesla also hasn't been growing its headcount as much or as quickly as it used to – making it hard to blame rapid growth.
Whether the rumors are true or not, it's clear that they're currently spreading at Tesla, and it's stressful for employees. Job insecurity is no fun. I wish the people at Tesla the best now.
FTC: We use automatic affiliate links to earn income. more.
“Beer fan. Travel specialist. Amateur alcohol scholar. Bacon trailblazer. Music fanatic.”