Fear of layoff has gripped employees at Tesla. Why? Because the company has asked its managers how critical each employee role is, in addition to cancelling the biannual performance reviews of some employees.
Managers in the US were told to assess the roles of their juniors and asked whether the roles were critical. There is no official confirmation of any layoff being planned, though.
It hasn’t been long since Elon Musk, CEO, Tesla indicated that sales growth would be slow in 2024.
The auto firm has been adopting cost-cutting measures for some time now amidst concerns of investors pertaining to competition from China and falling demand for new-energy automobiles.
It is pertinent to mention here that Tesla is no longer ranked number one in terms of electric vehicle (EV) sales. It has been overtaken by BYD, a Chinese firm.
Musk is known to be rather strict when it comes to his demands.
In December 2023, Tesla had decided not to grant merit-based stocks to its employees, as was the usual annual practice till then. As part of the yearly performance assessments or reviews, Tesla employees usually witnessed adjustments in their salaries and looked forward to stock awards, based on merit. The decision to not grant stocks was seen as a step towards overhauling its compensation strategy. Although no official statement was received in this regard, it was assumed that this decision was based on a need to cut costs amidst the challenging macroeconomic environment.
