Tesla (TSLA) has returned to the chopping block and is once again laying off its employees. This week, employees in multiple departments such as software, engineering and service are facing job cuts, just weeks after the company announced that it is shrinking its headcount by 14,000, according to a new report from Electrek.
To throw salt on the wound, Tesla has reportedly sent an email to a group of employees, who appear to require job accommodations for a disability, that informs them that they are getting the boot because “there was no reasonable accommodation" in their position and that they don't qualify for any other internal or external positions at the company, according to The Verge who obtained the memo from an anonymous employee.
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I am reaching out to let you know that after a careful review of your permanent work restrictions and your role, it was determined that there was no reasonable accommodation that would enable you to perform the essential functions of your position in your role. The next step in the interactive process is the Alternative Job Search (AJS process), which consists of reviewing Tesla’s internal and external job board to identify potential positions. This is to inform you that we have not identified any openings for which you appear qualified. Given recent changes in the business, we also do not currently anticipate any such openings in the near term. As such, we are advising that we intend to conclude the AJS process at this time. As we have not identified an alternative available position, we will begin processing your separation from employment with Tesla, effective May 3rd, 2024.
The email from Tesla is different from traditional layoff emails where workers are usually thanked for their time at the company and are often given well wishes for any future endeavors. The remaining timeline of employee benefits and the amount of severance that an employee will receive after being terminated are also usually briefly explained in these notifications to soften the blow.
Many Tesla employees who were notified that they are being laid off this week took to LinkedIn to share their disappointment and inform their connections that they are now looking for new opportunities.
“I have officially been laid off just two months after being promoted for the third time to a senior-level inspection coordinator,” wrote Jake Knowles in a LinkedIn post.
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“Everyone at Tesla has experienced some pressure in the past month, with colleagues departing every week. Eventually, this ongoing wave of layoffs has now reached me.” wrote Mingcheng Guo, who was a UX Designer at Tesla, on LinkedIn. “... While being laid off is disheartening, I am now looking ahead and ready to explore new opportunities."
Tesla last week cut hundreds of jobs in its Supercharging sector and abruptly ended its summer internship program, frustrating students who were already enrolled. Tesla CEO Elon Musk reportedly told employees last week that they need to be “absolutely hard core about headcount and cost reduction” and that staff members of executives who “don’t obviously pass the excellent, necessary and trustworthy test” will be terminated.
When Tesla first announced that it's shrinking its workforce by 10% on April 14, Musk informed employees that the reasoning behind the layoffs was due to the company’s “rapid growth” and a “duplication of roles and job functions in certain areas.”
Tesla began laying off its workforce this year shortly after it revealed in its first-quarter earnings report for 2024 dwindling vehicle sales, which have shrunk by 8.5% year-over-year. The company’s automotive revenue also decreased by 13% year-over-year, and its total revenue declined by 9% year-over-year.
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