Tesla Layoffs: Elon Musk-Owned Electric Car Maker Rumored To Prepare for Massive Round of Job Cuts

Tesla's Gigafactory Texas has announced plans to reduce production shifts for the Cybertruck amidst swirling speculations of imminent layoffs within the company. Reports have emerged from Tesla employees, indicating the likelihood of a significant workforce reduction in the coming week.

Amidst internal discussions, some Tesla employees have hinted at the possibility of layoffs reaching as high as 20% of the workforce, potentially impacting tens of thousands of employees. These speculations follow discontent among some staff members due to delayed performance reviews and price increases introduced earlier this year by the company.

The rumors of impending layoffs at Tesla are further compounded by the company's recent turbulent quarter, marked by a year-over-year decline in deliveries that fell significantly below even the most pessimistic analyst projections. While Tesla cited production setbacks impacting deliveries and logistics for customers, explanations faltered when confronted with the revelation of adding 46,000 vehicles to its inventory within a single quarter.

Throughout the past year, Tesla has maintained a trend of steadily increasing its inventory of cars. CEO Elon Musk has frequently attributed this situation to pricing dynamics and elevated interest rates. However, with what seems to be evident lower demand, analysts have anticipated Tesla to scale back production accordingly.

Tesla wouldn’t be the only big tech company doing layoffs. Several other major companies have recently announced layoffs, including Apple – although to a much lesser degree than what is being rumored now.