Tech layoffs: Tesla to have another round of layoffs in first quarter 2023, pauses hiring

Tech layoffs: Tesla to have another round of layoffs in first quarter 2023, pauses hiring

In June, Musk had asked Tesla executives to cut 10 per cent of staff and freeze hiring. But the company had resumed hiring during the second half of this year.

FPJ Web DeskUpdated: Thursday, December 22, 2022, 05:15 PM IST
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Tech layoffs: Tesla to have another round of layoffs in first quarter 2023, pauses hiring | Photo: Craig Adderley/ Pexels

Elon Musk-run Tesla has warned employees about another round of layoffs early next year, along with a complete hiring freeze.

In June, Musk had asked Tesla executives to cut 10 per cent of staff and freeze hiring. But the company had resumed hiring during the second half of this year.

According to Electrek, the new round of layoffs will come in the first quarter 2023 quarter. The report claimed that how extensive the hiring freeze will be is still unclear as Tesla still has plans to expand in some manufacturing locations.

The company said that teams will be expected to make layoffs during the January-March 2023 quarter and it will also stop hiring for now.

Tesla shares go down

Tesla has seen its stock nosedive more than 60 per cent this year. It began in late September, and got worse with Musk's $44 billion acquisition of Twitter. The shares tumbled further to around $137 apiece, its lowest ever, as Elon Musk on Wednesday again blamed global macroeconomic conditions.

Tesla bull Ross Gerber tweeted this week: "Tesla stock price now reflects the value of having no CEO. Great job tesla BOD -- Time for a shake up. $tsla."

Musk replied: "As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop."

Gerber further said that "Tesla needs a media and comms team; Tesla needs a succession plan as well as clarify when Elon will be back from twitter; Tesla needs to communicate about Elon's stock sales and a stand still agreement should be made".

Musk last week blamed the Federal Reserve for the current situation, saying his electric car company is doing better than ever.

Since November 2021, Musk has sold more than $39 billion of Tesla shares.

With inputs from IANS

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