Tesla to Impose New Hiring Freeze and Layoffs Despite Starting New Projects

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Tesla earlier informed its employees about imposing a hiring stop. A source has now confirmed that the company has planned another move of termination in the next quarter. However, Tesla CEO Elon Musk asked executives in June to immediately stop all hiring and decrease 10% of its staff. Musk has provided various reasons to different people for the elimination.

Meanwhile, one of the reasons includes that he has a very critical consideration of the company’s economy. It is noteworthy that Tesla is constantly and rapidly growing over the past several years. The boosting performance typically resulted in hiring disarrays that ultimately lead to rounds of terminations like this one.

However, the hiring stoppage was more distressing because there are reportedly Tesla’s several rapidly growing programs. These advanced projects need to hire thousands of workers at new facilities and factories in Germany and the US. Tesla reportedly turned back the pause decision and quickly started hiring again in the 2nd half of 2022.

Musk’s Twitter Acquisition Dropped Tesla’s Stock

Most reliable sources familiar with the matter provided essential information. However, a news outlet reported that Tesla seeks to impose a new hiring pause and plans more terminations. Keep in mind that Tesla earlier informed some of its employees that the company has now stopped hiring. Tesla reportedly confirmed that it is expecting to start eliminations at the beginning of 2023.

The company hasn’t yet confirmed the duration and size of an expected new hiring freeze. Meanwhile, Tesla is constantly planning to expand its manufacturing in various different locations. But there wasn’t any detail available related to this important matter. The moves reportedly came after the stock of Tesla experienced a significant decline throughout the year.

Despite the overall falling situation, the company’s financials are continuously and virtually hitting new records in each quarter. Experts believe that Tesla’s stock decline amid a massive market downturn in 2022. Tesla’s stock wasn’t moving on track with the rest of the market over the last couple of months. Most people said the major reason behind Tesla’s stock decline was Twitter’s acquisition.

Goldman Sachs and Cisco have Announced Layoffs

It is important that the timing of Musk’s purchase of the social platform matches the more recent declines. Musk reportedly sold significant numbers of Tesla shares to finance the social platform acquisition deal. Various signs have new significantly changed and mentioned that the issues of Tesla aren’t just related to the stock market.

The auto manufacturer has recently started offering temporary attractive discounts and gifts on a range of its vehicles. It motivated investors to consider that Tesla is probably experiencing some rare demand issues. Meanwhile, Tesla isn’t the only firm planning to implement the termination of employees. There are several other companies reportedly planning to cut their workforce.

Moreover, Cisco and Goldman Sachs have also announced the termination of their extra workforce. They reportedly confirmed that upcoming rounds of employee elimination will take place to change macroeconomics at the beginning of 2023. It is noteworthy that we are now entering new territories with the invention of the latest technologies.

Tesla’s Financial and Operations are Virtually Unaffected

The shareholders of Tesla can hold on to the situation and market approach because its stock isn’t moving properly. However, the finances and operations of Tesla aren’t poor and still unaffected virtually. It seems like there are supposedly some troublesome trends that Tesla is internally experiencing and leading to those moves.

Meanwhile, Musk was found constantly discussing a lot about macroeconomic trends on Twitter. He also laughed at claims that his Twitter actions were behind the reason for the stock price dropping of Tesla. But he instead blamed Fed’s rate increase for most reasons and warned of an upcoming downturn.

These types of comments often come from a CEO to justify bad quarter earnings. The company is reportedly expecting some bad trends that could remain in 2023. But Tesla is announcing discounts and gifts to sell its cars at the end of the 4th quarter of 2022. The company could rapidly move back to increase its headcounts if previous elimination rounds and hiring pauses are any indications.