Tesla, the electric vehicle company facing challenges, is going to lay off thousands of employees in the coming days. The company has announced this retrenchment at a time when its sales are being affected and it has lost the status of being the world's largest EV company.
More than 6 thousand employees are affected
The company released its March quarter results on Tuesday. Before that the company informed about its plan to lay off thousands of employees. According to Tesla's plan, a total of 6,020 employees are going to be affected by the layoffs. The employees who will be laid off are based in California and Texas. In California, 3,332 people are going to lose their jobs, while in Texas, 2,688 employees are going to be laid off. 285 employees will also be laid off from Tesla's Buffalo plant in New York.
The layoff plan will be implemented from June 14.
Earlier, Tesla had informed about the layoff plan last week. Information was given earlier. At that time the company had said that it planned to reduce its global workforce by up to 10 percent. However, at that time the company had not told which employees would be affected by its retrenchment plan. Now the company has also told when the layoffs are going to happen. The company is going to start implementing this plan from June 14.
More employees may be laid off now
Tesla was unaffected by the global wave of layoffs till last year and Was continuously hiring new employees. In the year 2021, the total number of global employees of Tesla was around 1 lakh, which increased to beyond 1 lakh 40 thousand by last year. Now the company has told about the plan to reduce it by 10 percent. This means that in the coming days, more employees of Tesla may face retrenchment.
Tesla's profit fell by 55 percent
The results released after the retrenchment plan revealed disappointing figures. Returns. Tesla's earnings declined for the first time since 2020, while profits also declined significantly. Tesla's net profit in the March quarter was $ 1.13 billion, which is 55 percent less than the profit of $ 2.51 billion in the year ago i.e. March 2023 quarter. During the quarter, the company's revenue declined by 9 percent to $21.3 billion from $23.33 billion a year ago.
Tesla is in trouble due to these reasons
After the year 2020 This is the first time that the sales of Elon Musk's EV company have declined. Tesla is facing a tough challenge due to the entry of new companies in the electric vehicle segment. Recently, many new Chinese companies have entered this segment. China's BYD has left Tesla behind in terms of sales.
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