Tesla to stop hiring and start firing, an insider suggests

22 December 2022

According to an employee familiar with the matter, Tesla plans to implement a hiring freeze and start a round of layoffs in Q1 2023 in anticipation of worsening macroeconomic conditions. Tesla tried to freeze hiring in mid-2022 but was fast to scrape the idea since many Tesla facilities need extra staff, especially the US and German Gigafactories.

But this time around, things seem pretty serious as the company has already halted hiring and mass layoffs are expected to commence in Q1 2023. However, it's unclear how long the hiring freeze will continue and how many employees will be laid off next year.

The news doesn't come as a surprise - Tesla's stock has been plummeting due to many factors and as the company is clearing its backlog it might face more trouble down the road.

Also, many other companies are laying off staff, especially when growth has been extraordinary in the last couple of years. Fast growth often leads to staff inefficiencies and a market downturn is normally the time to correct those.

We are yet to see how this all will affect the Tesla production in 2023.

Via