Tesla is doing badly! And in the current uncertain global economic context, exacerbated by geopolitical tensions, the company has had to take drastic measures. It has in fact announced a reduction of more than 10% of its global workforce. A decision which worries investors for its repercussions on the future performance of Tesla and its stock market listing.
Tumble on the stock market: Let’s review the context
Tesla's rapid expansion in recent years has led to:
- a duplication of roles,
- overlapping work functions in certain areas.
In preparing for its next phase of expansionthe company thus recognizes the need to reduce costs and increase productivity.
In note Internally, Musk emphasized the importance of streamlining operations to remain agile, innovative and ready for future growth. Tesla's workforce reduction is not an isolated event. She is part of a periodic organizational restructuring necessary every 5 years to align with future growth phases.
Job cuts at Tesla: Some figures
Tesla employed approximately 140,473 people according to its annual report. The job cuts mainly concern the United States and China. The areas covered are sales, technology and engineering.
Several service centers in the United States have experienced mass layoffs, primarily affecting sales staff and technicians. In China, more than 10% of the sales team was informed of their dismissal.
Tesla's US headquarters and the group's Chinese subsidiary did not immediately respond to requests for comment. Local authorities in Shanghai and Beijing also did not immediately respond to requests for comment.
Contrary to reports in the German press, Tesla Germany refuted claims that 3,000 of around 12,000 employees had been fired. In fact, the company is currently evaluating how to implement Elon Musk's instructions in the factory.
One thing is certain, Elon Musk's decision raises concerns about the impact on employee morale, Tesla's capacity for innovation and its stock market listing.
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