Tesla is reducing their workforce by 10%

Tesla has decided to trim the size of its workforce. They have taken this decision amid Elon Musk’s earlier announcement where he announced to reduce their workforce by 10%. Moreover, Tesla’s CEO declared economic concerns as the reason for cutting jobs.

The reduction process has initiated

Insider found 11 LinkedIn posts where Tesla’s employees said that the company has laid them off. Therefore, these posts reiterate the fact that Tesla has started cutting their workforce. 9 of these posts were posted last week. This shows that the lay-offs have started and the process in accelerating. Tesla’s decision is a manifestation of the global economy as markets are contracting. Moreover, the inflation is soaring and recession worries are running rampant.

Lesser job postings at Tesla

In addition, the number of job listings on Tesla’s website has dropped to 5,011. There were 5,855 job listings at the start of the month. Moreover, the listings have decreased by 32% from a recent high in May. According to sources, Tesla’s executives received an email directing them to pause all hiring worldwide. But, the full scope of job reductions and the workers affecting from it is not clear at this time. However, neither the company nor Elon Musk commented on this matter.

Uncertainty among the workers

The news has created a sense of uncertainty among the workers. They are confused that how this lay-off plan will affect their jobs. Moreover, Musk has instituted a new policy that mandates the workers to return to office and to stop working remotely. Musk also stated that the company will apply job cuts to salaried employees and not to hourly workers. In addition, Tesla has cancelled three online recruitment events for China which were to be held this month.

Tesla is not the only company which is laying off their workers. Last month, Netflix had also announced that they were cutting about 150 employees. Massive companies, including Amazon, Meta, and Microsoft have also implemented hiring freeze.

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