Tesla Lays Off More Employees Over Weekend: Report

Zinger Key Points
  • Tesla has cut employee count in several rounds of recent layoffs.
  • The layoffs come after Q1 results that came in below estimates from analysts.

Another round of layoffs by electric vehicle leader Tesla Inc TSLA is circling, which comes as the company has held several sets of layoffs in recent weeks.

What Happened: Tesla has rattled the market with several recent rounds of layoffs announced across various divisions like Supercharger networks and advertising.

Over the weekend, Tesla completed more layoffs, according to a report from Electrek.

The move follows a plan from Tesla to cut around 10% of its workforce. Other sources say the layoff totals could represent around 20% of the company's employees.

According to the report, the layoffs affected employees across various departments within the company. Areas include software, service and engineering according to Electrek.

Several employees reported they received an "employment level" email between Friday and Sunday announcing the layoffs.

Related Link: Tesla Q1 Earnings Highlights: EV Giant Misses Wall Street Estimates, Makes Cost Cuts, Invests In AI, Speeds Launch Of New Models

Why It's Important: Tesla CEO Elon Musk has told employees that the layoffs are due to a rising headcount growth in recent years that resulted in hiring inefficiencies and roles being done by too many people.

The layoffs come as Tesla reported first-quarter revenue and earnings per share that missed estimates from analysts. First-quarter deliveries and production figures also came in shy of estimates from analysts.

"We recently undertook a cost-cutting exercise to increase operational efficiency. We also remain committed to company-wide cost reduction, including reducing COGS per vehicle," the company said after its first-quarter results.

TSLA Price Action: Tesla shares are up 1% to $183.50 Monday, versus a 52-week trading range of $138.80 to $299.29.

Read Next: Tesla Bulls Praise Musk’s Q1 Earnings Call, See EV Giant On Collision Course With Uber And Lyft — But Critic Says ‘Christmas Just Came Early’ For Bears

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