Many Tesla employees are waking up each day, dreading the possibility of an email that begins with “Dear Employee…,” ending with a layoff notice. This anxiety follows Elon Musk’s announcement of plans to cut at least 10 per cent of Tesla’s workforce.
The decision comes as a cost-cutting measure in response to declining sales and disappointing Q1 results. This has also left the company’s future shrouded in uncertainty.
Michael Minick, a former Tesla sales representative affected by the April layoffs, shared his perspective on LinkedIn. The post mentioned Minick’s sentiments on having the continuous feeling of walking on eggshells every day at work. He emphasised that it would be a relief to know that they can breathe and focus on their work, without the gray cloud of uncertainty looming over.
Tesla has undergone significant changes recently, transitioning from its Silicon Valley roots to explore ventures beyond electric vehicles, such as artificial intelligence and robotics. This shift has contributed to a decline in employee morale, with some workers expressing concern that Musk’s focus on projects such as a robotaxi is overshadowing the core business of EV manufacturing. The lack of clarity from Musk on the subject of layoffs has only heightened employee anxiety.
The layoffs, impacting various departments including sales and human resources, are expected to reduce Tesla’s workforce, which stood at over 140,000 employees at the beginning of the year. Despite Musk’s reassurances about the continued expansion of the Supercharger network, there is uncertainty about the number of employees required to maintain the division.
Layoffs have affected technicians responsible for station maintenance and repair, raising concerns about the reliability of Tesla’s charging infrastructure amid a slowdown in EV demand industry-wide.
