Musk’s Planned 10% Job Cuts Keep Tesla Employees On Edge

In mid-April 2024, Elon Musk, the electric vehicle (EV) maker’s CEO, indicated that the company would reduce its workforce by 10% in response to global economic pressures and a decrease in demand. At this time, Musk stated this is a “difficult decision” as the company employs more than 140,470 workers. He wrote:

There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.

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The delay in actioning this strategic restructuring has employees anxious as they do not know if they will be laid off. Bloomberg noted that, according to sources familiar with, but not authorised to speak on the matter, the “rolling” job cuts may go on until June 2024. The news bureau also quoted a former Tesla sales official, who stated on LinkedIn:

It’s difficult to imagine the feeling of walking on eggshells every day at work, uncertain whether or not you’ll be able to pay your bills or feed your family. It would be a relief to know that they can breathe and focus on their work without the grey cloud of uncertainty looming over.

Since it started as a company driven to deliver green solutions, Tesla has shifted its focus over the years and, more recently, has zoomed in on artificial intelligence (AI) and robotics. Tesla stocks have plunged 29% since January 2024. According to Bloomberg, they slipped by another 1.4% on Tuesday, 21 May 2024.