In March, Tesla hired several hundred temporary workers at their factory in Grünheide, near Berlin. The company has now announced that they will be letting go of over 14,000 employees worldwide, with CEO Elon Musk emphasizing the importance of cost reduction and improving productivity in preparation for the company’s next phase of growth. While fixed-term workers were not affected by this announcement, the Business Insider news portal had previously reported that they would not have their contracts renewed.
Despite not specifying the exact number of layoffs, Tesla’s annual report for 2023 indicated that they employed 140,473 workers in December. The German factory currently employs more than 12,000 workers. This announcement follows a similar move in 2022 when Musk announced layoffs for 10 percent of the workforce due to economic concerns.
Tesla recently reported a decrease in vehicle deliveries in the first quarter of this year, attributing it to various factors including the crisis in the Red Sea and an incident at the Berlin plant. The company had cut prices multiple times last year to meet demand, resulting in a significant increase in sales. However, revenue growth slowed at the end of the year, prompting management to forecast weaker growth in 2024.
In addition to announcing workforce reductions and discussing their business performance, Tesla has also provided resources on various academic topics such as capstone project ideas, reflection essays, book critiques, ethics essays, citation formats, scholarship essays, and other academic writing tips on their platform.
