Tesla, the electric car manufacturer led by CEO Elon Musk, has announced a hiring freeze and a new round of layoffs.
According to a report from Electrek, “a source familiar with the matter” said that the company has informed employees about a hiring freeze. In addition to the freeze, the company has also confirmed that it will be undergoing more layoffs in the first quarter of 2023.
Tesla has communicated to some employees that it is stopping hiring for now. On top of the hiring freeze, Tesla also said that teams will be expected to make layoffs during the first quarter of 2023.
The company has already undergone a hiring freeze and layoffs earlier this year. The report notes that “in June, Elon Musk asked Tesla executives to “pause all hiring” and cut 10% of staff.” As far as the reasoning for the new freeze and layoffs, Musk apparently said that he has a “very bad feeling” about the economy going into next year.
The announcement of the hiring freeze and layoffs has raised concerns among employees and investors, who are wondering what the future holds for the company. While Tesla has outperformed from a financial perspective over the entire year, the company’s stock price continues to decline.
It is currently unclear at this time how the hiring freeze and layoffs will affect Tesla’s operations, or how long they will remain in place. The company has not provided any additional information about the measures, and it is unknown exactly when the layoffs will occur within the first quarter of 2023.
Many point to Twitter for Tesla’s recent woes. Some large investors in the automaker have complained that Elon Musk spends too much time on the social media website when he should be focused on Tesla and SpaceX. While Musk has promised to step down as CEO eventually, he has not indicated that will happen anytime soon.