Tesla Inc. (NASDAQ:TSLA) employees are fearful as layoffs are expected to last until at least June.
More than a month after CEO Elon Musk’s plan to cut at least 10% of the workforce, the process is still ongoing, leaving employees anxiously checking their messages every day, unsure of their job security.
Former Tesla Rep. Michael Minick, who was fired in April, shared his experiences on LinkedIn and described the ongoing fear and uncertainty among employees, Bloomberg reported.
“It’s hard to imagine what it feels like to walk on eggshells at work every day,” Minick wrote.
The company’s workforce has undergone significant changes, with an emphasis now on projects such as artificial intelligence and robotics rather than solely on electric vehicles.
Current employees say Musk’s emphasis on a robotaxi instead of a $25,000 electric vehicle has dampened morale, Bloomberg notes.
The company laid off 693 workers at its Nevada facilities as China faces escalating job losses as it faces pressure to regain market share in the world’s largest auto market.
The latest job cuts last week involved an additional 600 jobs at Tesla’s manufacturing facilities and engineering offices in Fremont and Palo Alto, California.
The original mission that once inspired many has become unclear. The ongoing unrest has contributed to a 29% drop in Tesla’s stock value this year, resulting in a loss of $224 billion in market capitalization.
Musk has not yet assured employees that the job losses are over, creating an atmosphere of anxiety. One employee compared the situation to “Squid Game,” the popular TV series in which contestants face deadly challenges.
Thousands of employees across several departments, including sales, human resources and the Supercharger division, have already been affected.
The company started the year with more than 140,000 employees, but Musk is aiming for a 20% workforce reduction.
The Supercharger division, crucial to Tesla’s network of more than 6,200 stations and 57,000 connectors worldwide, has seen significant layoffs.
Some employees, including North America Cost Director Max de Zegher, discovered layoffs by seeing their Microsoft Teams icons turn gray.
Although De Zegher was rehired, it is uncertain how many others will be brought back.
Workforce reductions have left gaps in the maintenance and repair of Supercharger stations, especially in Northern California and Canada, potentially leading to service disruptions.
As Tesla navigates these turbulent times, the broader EV industry is facing sluggish demand, increasing pressure on its workforce.
This has led to Tesla’s largest layoffs yet as subdued consumer confidence has hit sales.
Tesla shares have lost more than 7% in the past twelve months. Investors can gain exposure to the stock through ETFs, including Consumer durables Select sector SPDR Fund (NYSE:XLY) and Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS).
Price promotion: TSLA shares are trading 2.05% lower at $173.83 at last check Monday.
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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This article Tesla Layoffs Continue Through June, Low Employee Morale originally appeared on Benzinga.com
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