Tesla has informed its employees that it will be implementing a hiring freeze and confirmed that further cuts are expected next quarter , according to sources familiar with Electrek's situation .
As early as June, Elon Musk had asked Tesla executives to “halt all hiring,” while simultaneously reducing staff.
The CEO's explanations for the layoffs vary. One of them is his bad feeling about the economy in general.
See also: Elon Musk sells $3.6 billion worth of Tesla shares
Tesla has grown rapidly over the years, hiring many people. However, circumstances change, and Tesla, like many other large companies, has been forced to make cuts.
The announcement of a “hire halt” months ago was seen as somewhat worrisome, given that Tesla is busy with many projects and needs thousands of workers for its new factories in America and Germany. However, the electric vehicle reversed that decision and began increasing its hiring again in the second half of the year.
Now Electrek has learned that Tesla is taking drastic measures and making job cuts in the first quarter of 2023, as well as a new hiring freeze.
See also: Tesla launches Steam in its cars
It is currently unknown how extensive the hiring freeze will be. Unfortunately, no additional information has been revealed so far.
This news doesn't come as a huge surprise. Even though Tesla's financials have been hitting record highs every quarter, the stock has continued to decline throughout the year.
This is partly due to the broader market downturn in 2022.
The timing of the most recent declines matches the time period when Musk bought Twitter and the time period of selling Tesla shares to fund the social networking platform.
See also: Tesla Model 3: Camouflaged prototype spotted
Also, news of the cuts comes at a time when Tesla investors have expressed concerns about CEO Elon Musk's continued involvement with Twitter, which he bought for $44 billion in October.
However, Tesla is not the only major company to take cuts and freezes in wages. Several other companies have taken similar measures or have announced that they will make layoffs in the near future. These include Xiaomi, DoorDash, HP, Amazon, Meta, Twitter and others. Twitter in particular laid off thousands of employees, a few days after its acquisition by Musk. Later, the billionaire fired other people who criticized him or were not working hard enough to realize vision . Finally, several dissatisfied employees decided to resign.
Source: electrek.co
