Tesla Initiates a Hiring Freeze Amidst Impending Layoffs Next Quarter

Joshua Ramos
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Source: News18

One of the most well-known automotive companies on the planet isn’t safe from the present economic circumstances. Electrek has reported that Tesla has implemented a hiring freeze, as well as informing employees of layoffs coming in the next quarter.

The cutbacks on staffing is the latest in a line of similar actions taken by the company. Moreover, the controversy around founder Elon Musk’s Twitter endeavor and stock market implications possibly helped inform the decision.

Tesla Cutting Back

Sources familiar with the matter have told Electrek that Tesla has implemented a hiring freeze. Furthermore, they have informed those employees that layoffs are arriving at the next quarter. A reality that is all too familiar for the automotive tech giant.

This summer, Musk reportedly implanted a pause on hiring. Additionally, he required Tesla executives to cut back on 10% of the company’s workforce. The reasoning for the cutbacks is varied depending on the source, with no clear-cut financial comment being relayed.

Tesla has been one of the fastest growing companies in the world, a reality that often precedes layoffs like these. Electrek reported that the current hiring freeze is worrisome, however, it is due to Tesla’s “Several programs growing fast.”

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Source: Barron’s

Those programs will reportedly need thousands of people to fill out new factories in the US and Germany. Conversely, the last hiring pause was followed by a reverse in the second half of the year. There is no indication as to whether that same series of events could occur.

Regardless, Tesla has informed those employees that the layoffs are slated for early 2023. Yet, there is no indication of how extensive or vast those layoffs, or the hiring freeze, will be. Tesla is still growing and expanding various manufacturing locations. Nevertheless, stock in the company has been falling, as well as its overall market value.