“Take action with full force”
Tesla wants to cut at least 500 more jobs
April 30, 2024, 10:16 p.m
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According to a report, Tesla boss Elon Musk has announced that at least 500 more jobs will be cut at the car company. The entire charging station department should be closed. He also threatens to fire his company’s executives.
A few weeks after announcing mass layoffs at Tesla, the struggling US electric car manufacturer plans to cut at least 500 more jobs, according to a report. According to an article by the US news site The Information, Tesla boss Elon Musk has fired two top managers with immediate effect. At least 500 more employees are to follow, wrote the medium that specializes in the technology industry.
He will “take full action in reducing the number of employees and costs,” says an email from Musk, which The Information quotes. Musk announced that any manager who “holds on to more than three people who do not obviously pass the test of excellence, usefulness and trustworthiness” will be fired.
According to the information, the managers affected are Rebecca Tinucci, previously head of the charging station department, and Daniel Ho, previously head of product development. In addition, all 500 Tinucci employees will lose their jobs and another department will be closed.
Ten percent of the jobs will be eliminated
Tesla announced in mid-April that it wanted to cut around ten percent of its 140,000 jobs worldwide. According to broadcaster RBB, this also affects the plant in Grünheide, Brandenburg, near Berlin, where 400 permanent jobs are to be cut.
Last week, the US car manufacturer reported poor figures: Profit in the first quarter fell by 55 percent year-on-year to $1.1 billion (around one billion euros), and sales fell by nine percent to $21.3 billion . In previous years, profits had increased.
Recently, however, the conditions on the market for electric cars have become significantly more severe. The US company announced that it would “accelerate” the introduction of new and cheaper models. Tesla is particularly troubled by cheaper competition from China. Musk traveled to Beijing this week and said Tesla was “ready to take the next step in deepening cooperation with China.” The Chinese government asserted that the country’s “very large market” will “always be open to foreign-funded companies.”