Tesla employees are fearing for another massive layoff to cut costs amid multiple financial troubles the company is currently is facing, Business Insider reported.
Several anonymous workers told the news outlet that the electric vehicle manufacturer may conduct more job cuts as early as this week.
(Photo : Wang Zhao/AFP via Getty Images)
At least 20% of the workforce are expected to be affected by the layoffs.
The rumors of layoffs follow after Tesla was reported to have began asking managers to identify relevant employees in the company last February.
Employee performance review have also been delayed for nearly two months now, further enflaming worries of a massive job cut.
It did not help that the company announced a reduction in production shifts for its flagship Cybertrucks at the Gigafactory in Texas, a sign that the company is preparing to cut down operations.
Tesla EV Sales Plummet from Increasingly Steep Market
Talks of a massive layoff in Tesla has been circulating for quite a while as the company struggle to get over slower demands in an increasingly steeper EV market in the US.
Even efforts to boost its sales, like slashing down prices for its Model Y cars, are expected to further hurt the company's profits.
The company has also been noted of failing to reach its predicted EV deliveries amid operation disruptions across its international facilities and business troubles on US locations.
It did not help that other automakers have ramped up sales of their own EV models, many of which were far less expensive than the faulty Tesla cars.
Tesla has already warned investors of "notably lower" sales growth as it focuses on producing another EV model.
Also Related: Tesla EV Sales Drop Amid Increasing Competitive US Market
Legal Troubles Sweep Over Tesla Operations
Lower sales are not the only problems the EV maker has been facing over the past months as the number of legal battles also continue to grow.
Just recently, the company settled a lawsuit after its autopilot system has killed an Apple engineer in 2018.
This is not to count the multiple penalties Tesla has to pay over the past months from workplace incidents following its push to release more products on time despite production hurdles.
Related Article: Tesla Settles Lawsuit over Crash That Killed an Apple Engineer Using Autopilot
