California: Tesla, the major American company known for manufacturing electric vehicles has made the decision to lay off approximately 15,000 employees worldwide due to an unusual decrease in sales.
The company’s CEO, Elon Musk communicated to all Tesla managers in an internal memo that a thorough assessment of all departments should be conducted to determine who could be let go. Initially, it has been estimated that 10 percent of the workforce will be laid off.
International sources have reported that Elon Musk has suspended the payment of dividends to shareholders through the internal memo along with halting annual increments.
Experts monitoring Tesla’s affairs suggest that China has posed extraordinary challenges for Tesla in the world of electric vehicles. Increasing production capacity for Tesla and maintaining the ability to generate profits has become a significant challenge.
The decision to lay off such a large number of employees reflects the tough market conditions and the need for Tesla to adapt to changing dynamics in the electric vehicle industry.
The situation underscores the ongoing competitiveness and challenges faced by major players in the electric vehicle market and it will be interesting to see how Tesla navigates through these turbulent times.
