Tesla closes legendary office, more layoffs coming

Even though this is the company’s first announcement of its kind, judging by Musk’s words, it’s easy to imagine it’s not the last. It has allegedly been given to management to suspend recruitment worldwide, and although the current downsizing mainly affects hourly wage workers, Musk said in an interview last week that the electric car manufacturer plans to hire more hourly wage workers, and can lay off 10 percent of paid employees. According to SEC information, Tesla and its subsidiaries employed nearly 100,000 people at the end of 2021.

Musk recently called Tesla’s plants in Texas and Germany a real money-burner, but this is mainly due to supply chains, as the company is unable to increase production at its facilities due to existing global problems.

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Tesla’s share price fell 34 percent this year.

(Fox Business)

Cover image source: Win McNamee / Getty Images