Things seem a little complicated at Tesla these days. The company has been on the agenda with ongoing layoffs for the last few weeks. Now it has stopped hiring completely in North America. So what caused this sudden pause? Here are the reasons…
Why did Tesla stop new hiring?
While Tesla’s hiring pages were filled with more than 3,400 job postings in the past month, it now lists just three positions. The trio are for a development program that offers the opportunity to train in Texas, California or Nevada and work as full-time manufacturing associates at the Tesla factory.
There are a total of 326 job postings on LinkedIn, mostly in China. The only job posting listed in the US belongs to this development program. In a letter he wrote to his employees last month regarding layoffs, Elon Musk stated that due to the rapid growth of the company, unnecessary accumulation occurred in some roles and functions.
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By reducing hiring, Musk emphasized that the company must reduce costs and increase productivity in all areas in preparation for the next phase of growth. Unfortunately, it is estimated that at least 14 thousand employees were laid off during this period. Musk stated that he was sorry for having to make these mandatory decisions, but these steps had to be taken for the future of the company.
Tesla’s hiring halt and large-scale layoffs show that the company will have tighter financial discipline in the coming period. This may be a challenging period for Tesla employees, but it can also be considered as steps taken for the company to achieve a more efficient and focused structure. Whatever happens, it is certain that there will be no shortage of surprises from Tesla, led by Elon Musk. What do you think about this issue? You can write your opinions in the comments section below.