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Earlier in the day, Tesla laid off half of its global recruiting team in a bid to cut costs, according to people close to the record who are talking to Electrek.
In the past few weeks, Tesla has embarked on controversial cost-cutting initiatives, such as closing stores and drastically reducing employee compensation.
Now, Electrek has learned that the automaker has also made a significant series of layoffs within its global recruiting team.
According to sources, Tesla has fired about half of its global recruiting team, about 150 people.
(Update: after the publication of the story today, another source told us that the number was closer to one-third of the recruiting staff)
They received a notice today as well as a severance pay based on the length of their employment in the company. Several fired employees were long-time recruits and Tesla senior executives.
It's obvious that Tesla should slow down its retail recruitment efforts, which previously involved thousands of people as they opened new stores, but many layoffs today have nothing to do with recruiting in retail trade.
Some employees have learned that today's layoffs have been made to reduce costs.
A spokesman for Tesla declined to comment on this report.
Last year, Tesla announced that it had more than 45,000 employees, but the workforce is expected to decline significantly after being laid off several times in 2019.
Earlier this week, Elon Musk, President and CEO of Tesla, said the company would reverse some of its efforts to spend online sales and close stores, but that it is expected to partially increase prices relative to to those before the previous announcement.
Electrek's Take
It makes sense for Tesla to reduce its hiring staff if they do not plan to hire more employees in the retail business, which was a big part of their responsibilities, but they also fired people who were not there. nothing.
We heard about senior executives who had long been part of Tesla's hiring and who had been fired today.
I must say that some of these recent movements make me nervous for Tesla.
Recent price changes have essentially resulted in significant temporary reductions to generate demand and the online sales strategy alone seems to be an excuse to massively reduce retail employee compensation.
Now, they are downsizing their recruiting team, which will undoubtedly lead to a significant slowdown in workforce growth.
It is difficult to reconcile with a company that plans to hire thousands of production workers to build several new vehicle programs (Y models, Tesla Semi, Tesla Pickup) over the next few years and significantly increase its staff service to improve service coverage for homeowners. around the world.
What do you think? Let us know in the comment section below.
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