- Tesla employees fear possible layoffs could begin as early as this weekend.
- This follows earlier rumors from February that Tesla had temporarily delayed performance reviews.
- Tesla’s deliveries fell below Wall Street expectations during the first quarter.
Some Tesla employees fear layoffs are imminent, possibly as soon as this weekend.
Rumors are circulating around Tesla’s offices that budget cuts are on the horizon, seven engineers, including from the Austin gigafactory and the Fremont factory, told Business Insider. Although there has been no official communication to crews, some workers said they have heard that cuts could begin as soon as Sunday.
Two other workers said they hadn’t heard the layoff discussions, while others said they weren’t taking them too seriously.
“There have been rumors and some people are worried, but you know how quickly false rumors can spread in such a large company,” one engineer said.
A Tesla spokesperson did not immediately respond to a request for comment.
This is the second time in several months that concern over possible layoffs has arisen at Tesla. In February, the automaker reportedly asked managers to start identifying the roles most vital to the company. At the same time, Tesla also delayed performance reviews for some workers, Bloomberg reported. The exams were then postponed, three sources told Business Insider.
Tech industry workers are likely on high alert for any signs of a potential layoff. Several major tech companies, including Google and Microsoft, have already made budget cuts this year. Electric vehicle rivals like Rivian and Fisker have also laid off staff in 2024.
And Tesla has recently faced strong headwinds.
Tesla’s first quarter delivery figures reveal falling sales, For example. The automaker’s deliveries fell 20% from the previous quarter and more than 8% from the same period a year earlier, marking the first year-over-year sales decline since 2020.
Do you work for Tesla or tip? Contact the reporter via non-business email and device at gkay@businessinsider.com
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