Tesla To Freeze Hiring, Cut More Jobs In Q1 Amid Challenges: Report

Tesla Inc. TSLA is reportedly adopting more austerity measures amid the tough macroeconomic situation.

What Happened: Tesla told its employees that it was freezing hiring for now and would implement more job cuts in the first quarter, Electrek reported, citing people familiar with the matter.

See Also: How to Invest In Tesla (TSLA) Stock

Details regarding the scope of the hiring freeze and the number of job cuts weren’t available at this point in time, the report said. Tesla is still planning to expand in some manufacturing locations, added the report.

Incidentally, in early June, Musk announced a 10% job cut at the electric vehicle company, citing a “super bad feeling” about the economy. In an email, Musk reportedly told employees that hiring had been paused worldwide.

Tesla, however, began ramping up hiring in the second half of the year.

Why It’s Important: With a recession forecast for 2023, as the economy reacts with lagging effects to the Fed’s aggressive rate hikes this year, many companies, including big techs, have paused hirings and/or announced massive layoffs.

Cost cuts are seen as a strategy to preserve margins as top-line growth is hard to come by.
Tesla has been facing multiple headwinds this year, including China demand slowdown and a lack of CEO Elon Musk’s active involvement amid his preoccupation with Twitter.

Price Action: In premarket trading, Tesla shares were rising 1.36%, to $139.68, according to Benzinga Pro data.

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