Tesla is set to lay off more employees. As per reports, the electric car maker has notified its employees that it will be implementing a hiring freeze and that another wave of layoffs is also in the cards. Quoting an anonymous source familiar with the matter, Electrek reported that the layoffs will happen in the first quarter of next year.
Watch | World Business Watch | Tesla to freeze hiring, lay off employees in next quarter: Report
Tesla has communicated to some employees that it will be stopping hiring.
However, with Tesla planning to expand in some manufacturing locations, it is not known how extensive the hiring freeze will be as no further details were made available.
The current spate of layoffs comes after Tesla CEO Elon Musk implemented a 10 per cent staff cut in June. At the time, Musk reportedly gave different reasons to different people for the layoffs. He even chalked it up to a “very bad feeling” about the economy.
In the last year, since September and especially after Musk’s acquisition of Twitter, Tesla stock has experienced a steady fall which might be contributing to the hiring freeze. This year, the company’s shares have lost nearly 60 per cent of their value so far.
On Wednesday, Tesla’s shares tumbled to around $137 per share, it’s lowest ever as Elon Musk blamed global macroeconomic conditions. Shares of Tesla as per Reuters rose 1 per cent to $139.25 in Thursday’s trading before the bell.
(With inputs from agencies)
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