Tesla (NASDAQ: TSLA) stock rose over 1% on Wednesday amid reports of possible layoffs.
Tesla (TSLA) may be on the verge of a significant workforce reduction as it becomes apparent that CEO Elon Musk is scrutinizing essential roles within the electric vehicle (EV) firm.
Confidential informants indicate that the company and its chief executive have started interrogating managers and staff about the essentiality of their roles. It has sparked concerns that a wave of layoffs at Tesla could be imminent.
It suggests that the precise count of employees affected by the Tesla job cuts is still unclear. However, given Musk’s expressed intent to reduce expenses as the company’s revenue growth decelerates, the figure will likely be substantial.
Investors should be aware that Tesla has significantly increased its workforce in recent years, now employing around 140,000 individuals. It is roughly twice the number of employees the company had in 2020, as reported by The Verge. After such extensive recruitment, it might be time for the EV manufacturer to streamline its operations.
Tesla Joining the Job Cuts Trend
If Tesla decides to go ahead with the layoffs, it would join a long list of firms that have recently implemented similar actions. Numerous corporations have been reducing staff sizes after a hiring surge during the pandemic. Several are considering job cuts to manage the mounting inflation and increasing interest rates.
All these factors suggest that we can expect more layoff announcements in 2024 as more businesses strive to cut operational expenses in response to the challenging economic climate.
Tesla (NASDAQ: TSLA) Stock Price Action
TSLA stock inclined 1.34% to close at $187.58 on Wednesday. The traders had exchanged hands with 111,112,813 (111.11 million) shares compared to the average daily trading volume of 117.20 million.