Business News / Tesla will lay off more than 10% of its employees, so many thousands of people will be laid off

Zoom News : Apr 16, 2024, 08:57 AM
Business News: Elon Musk's electric car manufacturing giant Tesla will lay off more than 10% of its workforce. Let us tell you that the company is struggling with falling sales and rising prices. For this reason the company is going to do layoffs. Musk last announced layoffs in 2022. Tesla's workforce is set to grow from about 100,000 at the end of 2021 to more than 140,000 at the end of 2023, according to filings with U.S. regulators. In such a situation, if 10 percent of the employees are laid off, their number will be around 14 thousand.

Tesla shares fall

Tesla shares closed 5.6% lower at $161.48 on Monday. Tesla shares have fallen 31% this year, becoming one of the worst-performing stocks in the S&P 500 index. Musk said in a mail sent to all employees that as we are preparing the company for its next phase of growth, it is extremely important to look at every aspect of the company to cut costs and increase productivity. As part of this effort, we have conducted a thorough review of the organization and have made the difficult decision to reduce our workforce globally by more than 10%.

Continuous decline in demand

Sales of Tesla vehicles are continuously decreasing in America and China. The company has recorded a decline in vehicle deliveries in the first quarter. This is the first time in 4 years that its sales have fallen. Meanwhile, the company has also canceled its plan to make affordable EVs for the masses. Tesla was going to bring an affordable car, which was expected to be priced at $25,000. Investors were largely confident about this model. Musk had said production of the car, known as the Model 2, would begin in late 2025.