Tesla shocks the world with plans to lay off over 10% of its employees.


Recently, Tesla, the world's largest manufacturerof electric vehicles, has announced a move to cut over 10% of jobs in its global workforce. This choice which is the result of many question marks is unexpected for many because of Tesla's renowned fast accelerated growth and sustainable transportation. In this article, the mysteries around this gutsy move will be unveiled and possible consequences for the organisation's future will be addressed as well.

What has pushed Tesla to offload employees?

Tesla's greatly downsizing is mainly aimed at the put forth of the company’s operation efficiency streamlining goals. Beside the increasing need to produce electric vehicles, Tesla has also been under big pressure to reduce operating costs and improve its financial performance. Tesla’s workforce reduction strategy is aimed to help the business to fix the redundancies as well as to optimize the organizational structure incessantly to make it better able to face market challenges.

And what kinds of consequences may these actions be?

According to the experts, expected results of the mass layoffs at Tesla are the direct consequence not only for the company but for the affected employees as well. Although this action might bring Tesla to financial success in the short-term, it would lead to improper work conditions and might result in the depreciation of work ethics among the employees. Furthermore, the dismissals have the ability to tear down trust and confidence in Tesla leadership not only for the current employees but also for its future customers, which in turn might lead to the decline of its reputation and brand image in the market.

 What will Tesla do to overcome this point?

The recent layoffs in the Tesla plant indicate that the organization is going to concentrate on cost control measures and operation process improvement in each business unit. Additionally to that the organization can look for other chances of growth and spread to balance the impact of the workforce slimming. Tesla persists in its aim of pushing the whole world to rapid renewal of energy and transport environments, regardless of the difficulties it has to face.


Concluding, Tesla terminates more than 10% of its global team shows that the company exists technetronic market conditions. Though the transition may appear challenging for a while, it simultaneously presents an avenue for Tesla to transform itself as a business for long term growth. By accepting challenges and innovative solutions Tesla will always be in lead from other companies and the world will go through its successful transition to the sustainable future.

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