After Twitter, whose workforce went from almost 8,000 employees to just over 2,000 between October and December 2022, the ax of Elon Musk is about to hit the employees of Tesla. The US car manufacturer will cut 10% of its global workforce, after the order sent via email from Elon Musk himself. The downsizing plan aims to reduce business costs at a time when demand for electric cars seems to have lost its initial momentum. “As we prepare the company for the next phase of growth, it is extremely important to examine every aspect to reduce costs and increase productivity,” Musk wrote in the email, reported by Bloomberg. “We had to overhaul our organization, which is why we made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it has to be done.” At the end of 2023, Tesla employed just over 140,000 people worldwide. If the staff reduction plan is implemented to the letter, more than 14,000 employees will be laid off.
they slow down the events
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The production momentum that allowed Tesla to enter the circle of operating manufacturers around the world began in 2018 with the famous goal of 5,000 Model 3s to be produced every week in the Fremont plant. Since then, a rise has also continued with the Model Y, the best-selling car in the world in 2023, not only among electrical. A period in which Tesla employees almost doubled. However, the positive sales results were also conditioned by the price list reduction policy extended to all top models, which on the one hand benefited volumes, but on the other eroded profit margins. Profits now put in danger by increasingly fierce competition (see BYD), parallel to a demand for electric vehicles that seems to be slowing down somewhat. “Over the years we have grown rapidly with numerous factories around the world – Musk continues in the email – this rapid growth has caused a duplication of roles and work tasks in some areas”.
