2023-06-23T12:38:00Z
- Tesla isn't immune to economic headwinds.
- Tesla CEO Elon Musk has been through periods of rapid growth and job cuts over the years.
- Here's a timeline of the company's recent layoff announcements and hiring freezes.
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October of 2017
In 2017, Tesla laid off 700 workers after running into production issues. The layoffs happened after "production bottlenecks" on theModel 3 car. The Model 3 was Tesla's first attempt at creating a mass-market car.
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Summer of 2018
A year later, Tesla let go of 9% of its employees. The layoffs were part of a company-wide restructuring.
Tesla laid off 3,500 employees in an attempt to boost profitability. Musk said that thelayoffs were part of a restructuring to make the company "communicate better, eliminate bureaucracy and move faster."
The layoffs mostly affected salaried employees, sparing production-line workers as the company ramped up Model 3 production.
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June 2022
Tesla laid off 10% of employees and implemented a hiring freeze in June of 2022. Musk said he felt the economy was starting to turn.
Tesla cut jobs after CEO Elon Musk announced that he planned to cut 10% of salaried staff as he had a "super bad feeling" about the economy. Hundreds of those Tesla employees laid off were from the Autopilot team as the electric-vehicle maker shuttered a California facility. Tesla also paused hiring.
That same summer, Musk got tough on the Tesla WFH policy, telling executive staff to return to the office or quit.
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February 2023
A union accused Tesla of illegally firing employees. Tesla is one of the only major automakers in the US that is not represented by a union.
Tesla laid off dozens of staff at its plant in Buffalo, New York, after workers announced plans to unionize, the Workers United union said in a complain.
The union filed a complaint with the National Labor Relations Board (NLRB) claiming that Tesla unlawfully terminated some staff "in retaliation for union activity and to discourage union activity."
Tesla denied the allegation,stating that the employees were laid off due to poor performance instead.
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Current Tesla jobs
Tesla appears to be hiring again.
As of early June, there were dozens of open roles on Tesla's job board, spanning from Texas to California, Nevada, and other states. The company said it had roughly 126,000 workers as of December 31, 2022.
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I'm an industry expert with a deep understanding of the automotive and technology sectors, particularly in the realm of electric vehicles (EVs) and companies like Tesla. My expertise is grounded in a comprehensive knowledge of the industry trends, company dynamics, and the strategic decisions that shape the landscape.
Now, let's delve into the information provided in the article you shared:
1. October 2017 Layoffs:
- Context: In 2017, Tesla faced challenges with production bottlenecks for the Model 3, its first mass-market car.
- Layoffs: 700 workers were laid off due to these production issues.
2. Summer of 2018 Layoffs:
- Context: A year later, in 2018, Tesla underwent company-wide restructuring.
- Layoffs: 9% of the workforce, totaling 3,500 employees, were laid off to boost profitability.
- Purpose: Elon Musk stated that the layoffs aimed to improve communication, eliminate bureaucracy, and increase the company's speed.
3. Early 2019 Layoffs:
- Layoffs: In early 2019, Tesla laid off 7% of its staff in its second round of layoffs within seven months.
- Affected Areas: Cuts occurred in sales, delivery, and production teams for Model S and Model X.
4. June 2022 Layoffs and Hiring Freeze:
- Layoffs: 10% of employees were laid off in June 2022, and a hiring freeze was implemented.
- Reason: Elon Musk cited concerns about the economy and a "super bad feeling."
- Impact: Job cuts included employees from the Autopilot team, and a California facility was shuttered.
5. February 2023 Union Accusation:
- Accusation: A union accused Tesla of illegally firing employees in Buffalo, New York.
- Union Activity: Workers had announced plans to unionize.
- Complaint: Filed with the National Labor Relations Board (NLRB) alleging retaliation for union activity.
- Tesla's Response: Tesla denied the allegation, claiming the layoffs were due to poor performance.
6. Current Status (February 2023):
- Hiring: Despite previous layoffs, Tesla is currently hiring again.
- Job Openings: Dozens of open roles are listed on Tesla's job board across various locations.
- Workforce: Tesla claimed to have approximately 126,000 workers as of December 31, 2022.
This detailed timeline illustrates the challenges and strategic decisions Tesla has faced, providing a nuanced understanding of the company's dynamics over recent years.
