Tesla Launches New Round of Layoffs to Drive Cost Reduction Amidst Strategic Shift

Credit: Tesla

Tesla has initiated a new round of layoffs as part of its aggressive cost-cutting strategy, trimming various aspects of its operations as it transitions between two significant growth phases.

The electric vehicle giant began laying off employees several weeks ago in a bid to streamline expenses during what it described as challenging economic conditions. While Tesla remains stable, the company has acknowledged its focus on a singular objective: bringing its next-generation lineup of vehicles to market. CEO Elon Musk emphasized the necessity of sacrifices to achieve this goal.

Following the termination of thousands of employees in late April, additional job cuts have occurred over the weekend, as first reported by Business Insider.

Several affected employees took to LinkedIn to share their experiences. A quality engineer stated, ā€œThose following recent layoff news are aware that Tesla is implementing some ‘hardcore’ cuts, and well, it was my time. I had a sense that this was going to happen.ā€

This engineer was not the only one affected, as Tesla continues to reduce its workforce in this area. Another employee, who had relocated from one Tesla facility to Gigafactory 2 in Buffalo, New York, in March, also lost their job.

A Service Advisor confirmed their layoff, stating, ā€œLast week, I was impacted by the layoff of the Tesla Supercharger organization. It was a privilege to work on the vehicle interface, envisioning and crafting the next generation of user experiences.ā€

Musk recently acknowledged on X that the Supercharger team was being let go as the company planned to slow down new projects.

It appears that the scale of the layoffs may exceed the 10 percent figure initially reported by Tesla in a filing with the SEC when the terminations commenced.

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