After Bosch, Valeo and Stellantis, it’s Tesla’s turn to consider job cuts in the coming months. Indeed, according to information released by Bloomberg, Tesla executives were recently faced with a rather unexpected request: assess the criticality of each position held by their employees.

This approach apparently sowed anxiety within the company, raising fears of possible layoffs.

A slowdown in demand should be expected

According to information compiled by Bloomberg, Tesla decided to send its employees a simple one-line query to gauge the importance of their jobs. This decision was made after canceling the semi-annual review of the work of some employees. As of December 31 last year Tesla had 140,473 employees worldwidesignificant workforce, especially when signs of reorganization begin to appear.
Is this really a surprise? Looking back at Elon Musk’s recent statements, not so much, as the Tesla boss released warning of an expected slowdown in sales this year. Despite already implemented price reductions that have affected Tesla’s profits, growth prospects remain uncertain. This situation is causing concern among investors interested in efficient demand and growing Chinese competition.

The Chinese threat loomed

Despite a series of price cuts orchestrated by Tesla, China’s auto market, the world’s largest, recorded its first monthly drop in electric vehicle sales last January. This drop is explained by a decrease in demand.
In addition, in the fourth quarter the American manufacturer had to give up its leadership position in the field of electric vehicles to BYD. This change in status highlights the changing dynamics of the market, and 2024 will undoubtedly be an interesting year to finally determine in a tangible way whether the Chinese manufacturers’ strategy will pay off.

In any case, it already seems to be the case in our own market.

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