Tesla is rumored to be planning layoffs, shares are up. By Investing.com

© Reuters.

By Vlad Schepkov

Tesla (NASDAQ:), the world’s largest EV maker, has implemented a new hiring freeze and is preparing for new layoffs, according to a report released early Wednesday by Electrek.co.

According to a “reliable source familiar with the matter,” the company has asked employees to hold off on new hires for the time being, and prepare for another round of cuts to some teams in the first quarter of 2023.

No details on the number of jobs affected were provided, and it is noted that Tesla “still plans to expand at some manufacturing sites.” If confirmed, this would be TSLA’s second wave of workforce reductions in just eight months – in early June, company CEO Elon Musk announced a 10% cut in headcount, citing deteriorating macroeconomic conditions and overly aggressive hiring in previous periods.

No major automaker has made layoffs lately, but Tesla isn’t the only tech company looking to better control its labor costs – tech giants like Meta (NASDAQ: ), Apple (NASDAQ:), Amazon (NASDAQ:) and Google (NASDAQ:), among others, have all announced freezes and workforce reductions in recent months.

The rumor also echoes the current slump in TSLA shares – shares of the electric vehicle giant have fallen more than 65% since the start of the year, battered by global economic woes, as well as the controversial measures of its leader Elon Musk, including his acquisition of Twitter (NYSE:) and the Tesla stock sales he made for the financier.

TSLA gains almost 1% at the start of the session, after having lost 8% in the previous session.

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