Tesla is laying off 10% of global workforce amid declining sales and production cuts

[midian182]

What just happened? Tesla is joining the long list of companies that are laying off a substantial portion of their employees. The EV giant is eliminating more than 10% of its global workforce, which means at least 14,000 workers will be pushed out.

Tesla boss Elon Musk gave workers the bad news in an internal memo sent over the weekend. "Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity," the billionaire wrote in a memo, first reported by Electrek.

Several outlets reported that the layoffs were coming before Musk made them official. Bloomberg reports that Tesla had told managers to identify critical team members. Managers were also told not to give stock-based compensation to employees as part of their annual performance reviews, which were temporarily delayed. Moreover, the company's stock declined on the back of reports that production at the Shanghai Gigafactory had been reduced.

Tesla recorded first-quarter vehicle deliveries of 386,810 earlier this month, fewer than what analysts had been expecting. Deliveries were down 20% in Q1 compared to the previous quarter and more than 8% compared to the same quarter a year earlier, marking the automaker's first year-over-year decline since 2020. Tesla blamed the disappointing figures on the Berlin Gigafactory arson attack by environmentalists, the production ramp up for the refreshed Model 3, and supply-chain issues stemming from conflict around the Red Sea.

Tesla's share price has crashed this year

Tesla had 140,473 employees globally as of December 2023. An anonymous source told Reuters that some staff in California and Texas have already been notified of layoffs.

The EV industry has been struggling recently as cost-conscious consumers shun the associated high vehicle prices and expensive repair costs in favor of traditional combustion-engine vehicles. Tesla has been cutting the price of its EVs recently as it faces increased competition from Chinese rivals selling cheaper alternatives.

Tesla's share price fell 1.3% in pre-market trading on the back of the news. The company's stock is down around 31% this year.

In an attempt to get more people to purchase its full self-driving tech, Tesla started offering a free trial for all owners earlier this month. Musk also instructed employees to show North American customers how to use FSD Beta before completing a delivery.

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Tesla is laying off 10% of global workforce amid declining sales and production cuts

 

[m4a4]

...Haven't they cut jobs pretty much every year at some point?

Why is this news, letalone bad news compared to all the other companies that have also been doing layoffs?

 

[mbrowne5061]

...Haven't they cut jobs pretty much every year at some point?

Why is this news, letalone bad news compared to all the other companies that have also been doing layoffs?

Because I believe 10% is the 'trip wire' for being forced to report a layoff to the government. Previous layoffs from Tesla were much smaller, and usually focused on a single site's operations, not company-wide nor this large.

Basically, it was all of the previous layoffs that were unworthy of being called "news". But gotta get those clicks somehow.

 

[amstech]

Elon Musk is the man, but battery technology is in horse and buggy stages.

 

[RudyBob]

This site is the biggest joke in tech news. I have no idea how it survives. The mods have the mentality of nine-year olds and the credibility of CNN.

I wouldn't go that far but I will agree based on the lack of comments to the articles that they are of low interest and repetitive. Techspot should up it's game

 

[yRaz]

Elon Musk is the man, but battery technology is in horse and buggy stages.

I hate when people say this because not too long ago, rechargeable batteries were so bad that it was better and cheaper to just buy disposable alkaline batteries. It wasn't until 2005-2006 that rechargeable batteries became practical and not until 2010 that rechargeable battery performance was good enough to make disposables impractical in most applications

 

[Theinsanegamer]

I hate when people say this because not too long ago, rechargeable batteries were so bad that it was better and cheaper to just buy disposable alkaline batteries. It wasn't until 2005-2006 that rechargeable batteries became practical and not until 2010 that rechargeable battery performance was good enough to make disposables impractical in most applications

So....you hate it because it's right? Batteries were in the friggin Jurassic era until recently. Horse-and-buggy is a pretty good description of what they are now, or maybe VERY early gas engine. Yes they work, yes you could technically use them, but they dont hold a candle to what we have now.

I wouldn't go that far but I will agree based on the lack of comments to the articles that they are of low interest and repetitive. Techspot should up it's game

I dont normally agree with Psycros, but did you see that joke of an editorial they posted and defending this morning? Techspot is trying its best to eliminate any credibility it had of being a legit "tech" website. Even came with the "its unfortunate you dont like this slop" BS apology that big companies use.

 

[yRaz]

So....you hate it because it's right? Batteries were in the friggin Jurassic era until recently. Horse-and-buggy is a pretty good description of what they are now, or maybe VERY early gas engine. Yes they work, yes you could technically use them, but they dont hold a candle to what we have now

ICR Engines peaked in the 90s, now they're over complicated and less reliable. I can go days without worrying about a charge on my phone and I use that mostly to argue with you guys. If all I did was make calls with it I could probably get a week out of it. Battery tech is pretty awesome now, what use case do people have where saying "rechargeable battery tech sucks" is true. I hear people say it all the time but I never see examples.

So rather than be one of the people that just says I'm wrong give me some real world examples of me being wrong on this subject

 

[Theinsanegamer]

ICR Engines peaked in the 90s, now they're over complicated and less reliable. I can go days without worrying about a charge on my phone and I use that mostly to argue with you guys. If all I did was make calls with it I could probably get a week out of it. Battery tech is pretty awesome now, what use case do people have where saying "rechargeable battery tech sucks" is true. I hear people say it all the time but I never see examples.

So rather than be one of the people that just says I'm wrong give me some real world examples of me being wrong on this subject

So, it's your opinion that ICE tech peaked in the 90s? Because, LMAO that's just wrong. The tech may have been simpler but it was also FAR less capable then it is today. Power out put and efficiency, along with emissions, out of engines today are far better then they were 30 years ago. So long as you dont try 10k oil changes most modern powertrains have no issue going hundreds of thousands of miles.

Batteries today still pale compared to ICE. Battery cars STILL cannot cope well with sustained below freezing temperatures (see the chicago disaster this winter), still have issues with minor damage totaling batteries and, by extension, complete cars due to cost (Hyundai iconiq 5, two separate stores out of canada) and still have issues with long term degradation (many, MANY teslas with bad batteries flopped on ebay, failing nissan leafs, ece). Trying to TOW with an EV is a complete joke, and recharging outside of the tesla NACS network is a major headache. Oh yeah, and batteries still have issues with not being able to charge because they're too HOT too, in addition to being too cold.

Your phone can go multiple days on a charge? GREAT! That doesnt mean the tech isnt still early in development, it just means modern phones are optimized enough that low energy density isnt as much an issue as it was. Phones still chew through batteries in 4-5 years and struggle with temp issues in more extreme weather. They're not perfect.

Batteries have come a long way but they are still not a mature tech.

 

[yRaz]

So, it's your opinion that ICE tech peaked in the 90s? Because, LMAO that's just wrong. The tech may have been simpler but it was also FAR less capable then it is today. Power out put and efficiency, along with emissions, out of engines today are far better then they were 30 years ago. So long as you dont try 10k oil changes most modern powertrains have no issue going hundreds of thousands of miles.

Batteries today still pale compared to ICE. Battery cars STILL cannot cope well with sustained below freezing temperatures (see the chicago disaster this winter), still have issues with minor damage totaling batteries and, by extension, complete cars due to cost (Hyundai iconiq 5, two separate stores out of canada) and still have issues with long term degradation (many, MANY teslas with bad batteries flopped on ebay, failing nissan leafs, ece). Trying to TOW with an EV is a complete joke, and recharging outside of the tesla NACS network is a major headache. Oh yeah, and batteries still have issues with not being able to charge because they're too HOT too, in addition to being too cold.

Your phone can go multiple days on a charge? GREAT! That doesnt mean the tech isnt still early in development, it just means modern phones are optimized enough that low energy density isnt as much an issue as it was. Phones still chew through batteries in 4-5 years and struggle with temp issues in more extreme weather. They're not perfect.

Batteries have come a long way but they are still not a mature tech.

We were running submarines on batteries in WW2, the first car was electric. The idea of a fully electric truck is stupid. I don't even entertain the idea of electric trucks. Hybrid power trains are a different story.

But modern ICE engines are trash. Lots of this has to do with right to repair, but that doesn't stop them from being plastic garbage.

I also don't get the "more power and better emissions" side of things. Emissions has to do with larger catalytic converters on the exhaust. After we moved fuel injection, nothing that goes on inside an ICE engine has anything to do with emissions.

A trend I see is these engines needing replaced. I see VW, crystler engines, any Mercedes 4 cycllinder, anything from Hyundai and Kia. They build a small engine, tune it to make 300HP and then it blows up at 80k miles. I could tune my honda from 180HP to 300 no problem but I'd probably blow it up. VW/Audi group have oil clogging issues in all their motors. The oil passages to the main bearings get clogged and then throw a rod. Crystler has a problem where solvents in synthetic oil will dissolve the rubber seal on the head gaskets over time.

There are also issues with fuel saving features like cylinder deactivation. CD causes uneven wear in the engine.

But let's go back to electric trucks real quick because I want to bring up full electric semi trucks. You need megawatt chargers for semitrucks so even if the battery tech existed for them to be functional we don't have the grid infustructure for it.

I drive around a thousand miles a week for work. My dream vehicle is a plug in hybrid SUV. I want a plugin hybrid version of the Toyota 4runner.

 

[m4a4]

I dont normally agree with Psycros, but did you see that joke of an editorial they posted and defending this morning? Techspot is trying its best to eliminate any credibility it had of being a legit "tech" website. Even came with the "its unfortunate you dont like this slop" BS apology that big companies use.

Oh? I must've missed that one.

And yeah, that's a big part of the reason why I stopped with my TS Elite. At least one of the mods likes to stealth delete comments, even the ones that aren't very spicy.
Heck, I couldn't even call out an Apple fanatic recently because the facts I presented would've hurt their and the mod's feelings, I guess..?

 

[Uncle Al]

Just goes to show that Musk has NO LOYALTY to the people that made him wealthy ....

 

[p51d007]

At least the other vehicle MFG's can go back to producing ICE vehicles, as long as they are legal to produce.
Most people that wanted an EV, already have one.

 

[Starfals]

Just goes to show that Musk has NO LOYALTY to the people that made him wealthy ....

Sure, but isn't that the usual case for everybody that's rich? I keep reading similar stories about so many others. Not to mention shady practices. People usually get rich on top of others. I don't even have the heart to lay off 1 person, or get more money by exploiting others. I just can't do it.

 

[Mr Majestyk]

They should layoff 100% of their CEO. Tesla collapsing would be a great day indeed whilst Felon Musk is associated in anyway with the company he never started.

 

[Bobbydpue]

This is what happens when the major motor vehicle manufacturers start making EVs. Tesla should have concentrated on improving build quality and quality overall rather than coming out with different vehicles. Also not coming out with model years with a list of improvements or features hasn't helped them either.

 

[Endymio]

They should layoff 100% of their CEO. Tesla collapsing would be a great day indeed whilst Felon Musk is associated in anyway with the company he never started.

What felonies did Musk commit? Or are you attempting a career in fiction? As for laying off their CEO, Tesla is still by far the most successful EV maker in the world, and no CEO before in history has transformed a bankrupt enterprise into a trillion-dollar enterprise in half a decade's time.

 

[Mr Majestyk]

What felonies did Musk commit? Or are you attempting a career in fiction? As for laying off their CEO, Tesla is still by far the most successful EV maker in the world, and no CEO before in history has transformed a bankrupt enterprise into a trillion-dollar enterprise in half a decade's time.

Don't give up your day job, comedy isn't your strong point.

 

[toooooot]

A trend I see is these engines needing replaced. I see VW, crystler engines, any Mercedes 4 cycllinder, anything from Hyundai and Kia. They build a small engine, tune it to make 300HP and then it blows up at 80k miles. I could tune my honda from 180HP to 300 no problem but I'd probably blow it up. VW/Audi group have oil clogging issues in all their motors. The oil passages to the main bearings get clogged and then throw a rod. Crystler has a problem where solvents in synthetic oil will dissolve the rubber seal on the head gaskets over time.

There are also issues with fuel saving features like cylinder deactivation. CD causes uneven wear in the engine.

My understanding is that most of these problems are a result of tight emission requirements.

 

[Theinsanegamer]

We were running submarines on batteries in WW2,

Those were diesel electric, batteries could only be used for a short time before needing recharged. Not to mention they gave of toxic gasses, were massively heavy, and needed frequent maintenance. Not a great way to rebuke the argument that batteries are still evolving.

the first car was electric.

Ditto

The idea of a fully electric truck is stupid. I don't even entertain the idea of electric trucks. Hybrid power trains are a different story.

But modern ICE engines are trash. Lots of this has to do with right to repair, but that doesn't stop them from being plastic garbage.

I also don't get the "more power and better emissions" side of things. Emissions has to do with larger catalytic converters on the exhaust. After we moved fuel injection, nothing that goes on inside an ICE engine has anything to do with emissions.

A trend I see is these engines needing replaced. I see VW, crystler engines, any Mercedes 4 cycllinder, anything from Hyundai and Kia. They build a small engine, tune it to make 300HP and then it blows up at 80k miles. I could tune my honda from 180HP to 300 no problem but I'd probably blow it up. VW/Audi group have oil clogging issues in all their motors. The oil passages to the main bearings get clogged and then throw a rod. Crystler has a problem where solvents in synthetic oil will dissolve the rubber seal on the head gaskets over time.

There are also issues with fuel saving features like cylinder deactivation. CD causes uneven wear in the engine.

But let's go back to electric trucks real quick because I want to bring up full electric semi trucks. You need megawatt chargers for semitrucks so even if the battery tech existed for them to be functional we don't have the grid infustructure for it.

I drive around a thousand miles a week for work. My dream vehicle is a plug in hybrid SUV. I want a plugin hybrid version of the Toyota 4runner.

those engines need replaced because most people do not do maintenance. they dont do regular oil changes, they never CHECK their oil, they dont keep up with collant changes, spark plug changes, or timing chain changes. Then, when the engine blows up, they cry "wah ICE bad I wanna EV".

The sheer number of blown up VWs I've seen because NOBODY does the 100k timing chain maintenance is baffling. "well my 99 corolla didnt need it" your 99 corolla made 80HP on a 2.5L engine. Yes, higher HP engines are more maintenance hungry. Do the maintenance, and they will continue to run for a long time.

As for emissons, no, fuel injection is still involved in modern emissions. The time an engine can run rich/lean is determined by emissions. If it were all about "catalytic converters" then RAM wouldnt need to retire the HEMI. A 90s engine, no matter what cat you put on it, would never pass emissions today.

 

[lonetac]

And the same thing that happens to every company Musk is part of is happening here.

Tesla is ONLY successful thanks to all its government grants. Without them the company is dead.

This will just be another company Musk ran into the ground. He fails upward constantly. Surprised they havent kicked him out of this one yet. Nobody wants to work with this man.

Look at Twitter... I mean X, its dying a slow death and with the new sub costs its going down the hill more.

"In the name of freedom of speech I will censor everything I dont agree with and charge you to post your opinion that I will likely delete because it breaks my fragile male ego" - Man baby Musk

 

[Endymio]

Tesla is ONLY successful thanks to all its government grants. Without them the company is dead.

This will just be another company Musk ran into the ground. He fails upward constantly.

Seriously, where do people get disinformation like this? When Musk took the reins of Tesla, the company was effectively bankrupt and had produced less than ten total vehicles. Within three years, Tesla was a billion-dollar company, and within six years, Tesla was a trillion-dollar company -- the fastest such growth in world history. Ever.

Those are the facts. Now you may return to your fantasy visions.

"In the name of freedom of speech I will censor everything I dont agree with and charge you to post your opinion

Stop the nonsense. Twitter is censoring far less under Musk than before, and no one is being charged to "post their opinion". The only service charge is for the blue-check status symbol.

 

[captaincranky]

Those were diesel electric, batteries could only be used for a short time before needing recharged. Not to mention they gave of toxic gasses, were massively heavy, and needed frequent maintenance. Not a great way to rebuke the argument that batteries are still evolving.

Well, of course they "gave off toxic gases". Submarine batteries were "lead-acid" designs, the same tech that is used in automobiles to this day. A sulfuric acid/water electrolyte at a specific gravity of 1.250, and lead plates.

 

[captaincranky]

My understanding is that most of these problems are a result of tight emission requirements.

Well no. Most of these problems are caused by the public, (as "Maverick" put it), "feeling the need for speed". Put more simply, public greed.

Emission standards force lean fuel air mixtures on ICE engines. "Lean is power". Unfortunately, lean is also heat, with the concomitant danger of burning holes in pistons.

While computer control of fuel injectors definitely forestalls the issue, it likely doesn't altogether prevent accelerated wear in the highest HP per cubic inch designs.

 

[captaincranky]

Elon Musk is the man, but battery technology is in horse and buggy stages.

Perhaps instead of posting "graven images" of Trump, and overtly worshiping Musk, you should join a research group firmly committed to , "bringing battery tech out of the dark ages"