Tesla, the American EV builder, has recently implemented a company-wide hiring freeze and has removed nearly all of the open positions from its jobs board. According to Quartz, as of Thursday morning, only three positions related to the company’s “Manufacturing Development Program” remained posted, and these internships do not mention any wages. This suggests that individuals who wish to work for Tesla may have to do so for free.
This drastic action by Tesla comes in the wake of the company’s disappointing Q1 earnings report. In an effort to cut costs, Tesla aims to eliminate 10% of its headcount, which amounted to more than 140,000 employees globally at the end of 2023, according to Reuters. The first round of job cuts included two executives and 500 employees from the Supercharger division, responsible for the company’s fast-charging network. Subsequently, further layoffs occurred in Tesla’s software, service, and engineering departments.
The impact of these layoffs has not gone unnoticed internally. Rich Otto, Tesla’s former head of product launches, publicly announced his departure from the company on LinkedIn. In his post, Otto expressed his concerns about the recent layoffs, stating that they have disrupted the harmony between great people and great products within the company. “The recent layoffs that are rocking the company and its morale have thrown this harmony out of balance,” he said. Otto emphasized that his decision to leave was driven by a desire for change and a belief that it was time to address the challenges Tesla is currently facing.
With the removal of the majority of job postings on its website, Tesla still had several hundred positions listed on professional platforms as of Wednesday, according to Quartz. This indicates that the company is still actively seeking candidates for specific roles within the organization.
The recent hiring freeze at Tesla reflects the company’s ongoing efforts to streamline operations and reduce costs following its disappointing financial performance. It is not uncommon for companies to implement job freezes or layoffs during periods of economic uncertainty or when facing financial challenges. However, it remains to be seen how the reductions in staff will impact Tesla’s ability to meet its production goals and maintain innovation in the highly competitive electric vehicle market.
As Tesla continues to navigate these changes, it is important for potential job seekers and current employees to closely monitor the company’s hiring practices and evaluate the broader implications of these employment decisions. While the removal of job postings may indicate a temporary freeze, it is essential to consider the long-term prospects and stability of a career at Tesla. Additionally, individuals considering opportunities at Tesla should assess the potential benefits and drawbacks of participating in unpaid internships, such as the “Manufacturing Development Program” mentioned in the remaining job postings.
In conclusion, Tesla’s recent removal of a significant number of job postings suggests a company-wide hiring freeze as part of its efforts to reduce costs. The layoffs and departures of key personnel, such as Rich Otto, highlight the challenges facing the company. Job seekers and current employees should stay informed about Tesla’s evolving employment landscape to make informed decisions about their careers within the organization.