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Tesla Job Review Triggers Layoff Fears

By Nithya Bose in Business News, posted February 8, 2024

Tesla is reportedly evaluating the necessity of each employee's role, causing concern among its workforce about potential layoffs.

Tesla managers have received instructions to assess the criticality of every position within the company.

Sources said the company canceled some scheduled biannual performance evaluations.

This had led to fears among staff job cuts could be on the way.

Tesla, which employed 140,473 people globally by the end of last December, has not yet commented on the matter in response to inquiries from Reuters.

The electric vehicle maker’s stock experienced a 2.7 percent increase in premarket trading despite a significant 25 percent drop earlier in the year.

These reports come after CEO Elon Musk warned of a slowdown in sales growth for the year amid pricing adjustments that have impacted the company's profit margins.

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This situation has raised concerns about weakening demand and the growing challenge from Chinese competitors.

Notably, in China, a crucial market for new energy vehicles, sales experienced a month-on-month decline in January, marking a downturn in demand.

Furthermore, Tesla lost its position as the leading electric vehicle manufacturer by sales to China's BYD in the last quarter.

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