Tesla Reportedly Preparing for Large-Scale Layoffs; Employees Concerned Over Potential Termination

Tesla Inc. reportedly announced it will cut short Cybertruck production shifts at its Gigafactory in Texas, causing rumors of massive layoffs.

According to Electrek, the word on the street is that Tesla is preparing for a round of job cuts that will affect thousands of workers. The publication said it received many reports today from Tesla's employees.

On the Verge of Going Jobless

Workers have expressed strong concerns as they have been hearing speculations that Tesla may terminate a considerable number of jobs starting this week. Some staff said they heard the company may cut as much as 20% of its workforce, equivalent to thousands of employees.

The news started after Tesla drove some workers up the wall over delayed performance reviews and price hikes earlier this year. They are also irritated by the company's disappointing quarter report, which showed a year-over-year cut in deliveries. The results were way below even the most downbeat analyst estimates.

Reduced Production at Tesla Gigafactory

Tesla is expected to trim down its production due to low demand. In March, the company slashed production at its Gigafactory in Shanghai, which is considered its most productive plant, and today, the shortened shifts for Cybertruck at the Texas Gigafactory have emerged.

The lower demand causing the layoffs and reduced production could be due to worsening economic conditions and the resurgence in the popularity of hybrid models, which are also cheaper than electric vehicles. Meanwhile, Investing.com reported that the EV maker slashed the prices of its EVs over the past year, especially in China, as part of its effort to raise demand once again.

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