Musk wrote in the email: We conducted a thorough review of the organization and made the difficult decision to lay off 10% of its workforce worldwide. As painful as it is a painful decision, we must do it.
No one expected that the global electric vehicle giant could not stand it first, Tesla announced a global layoff of 10%, and it was implemented immediately, this action has a huge impact.
1. Tesla has more than 140,000 employees worldwide and has laid off more than 14,000 employees;
2. After announcing layoffs, Tesla's stock fell more than 6%, shrinking by $30.433 billion overnight, or more than 220 billion yuan.
This incident was quite sudden, and there was no news before, when some overseas Tesla factory workers went to work, the security personnel scanned the badges one by one, only to know that they had been fired.
Of course, layoffs also involve China, and the action is also very fast, some employees were fired on the same day, but the compensation is also top-notch.
Although Tesla's sudden layoffs are not so friendly to those who have been laid off, he did not give employees a salary cut and transfer, nor did he wear small shoes, and he did not make it difficult in every way, and he directly gave N+3, which means that if you work for three years, you can get 6 months' salary at one time, and if you join the company for less than half a year, it will be calculated according to 0.5N+3, and you can also receive 4-50,000 yuan in compensation at one time.
Unlike some domestic companies, in order to lay off employees without compensation, they try all kinds of ways to make employees leave voluntarily, not to mention N+3, in comparison, Tesla is more worthy of admiration and trust.
Netizens also expressed their opinions on this:
"Only foreign companies comply with labor laws"
"Sure enough, the tolerance is very high, and if Chinese companies lay off employees on a large scale, they must not make a fuss."
"Let's try BYD's layoff method, transfer, support, issue fines, and wait for yourself to leave with a basic salary for 5 days and 8 hours. Is this true?
"Others give N+3, we give N+1 ourselves"
"We haven't even bought social security, and we still want compensation"
According to Chinese Tesla insiders, the layoffs are very fast and have basically ended, the most serious layoffs are in the sales department, the proportion has reached 50%, other departments are generally 20-30%, and there are also departments that have laid off 40% of the staff, which is far more than the 10% that Musk said.
In addition, there are two heavyweights who have left the company, Drew Baglino, senior vice president of powertrain and energy engineering, who has worked at Tesla for 18 years and often accompanies Musk to important meetings, and is Musk's right-hand man; The departure of these two figures shows that Tesla's internal growth has encountered serious resistance.
But according to Musk, about every five years, the company needs to be restructured and streamlined in order to achieve the next phase of growth. What seems to be a normal company development is actually largely due to the poor sales of Tesla cars.
In the fourth quarter of last year, Tesla's gross profit margin was 17.6%, and in the first quarter of this year, Tesla's global deliveries were only 387,000 units, lower than the estimated 430,000 units, a month-on-month decline of 20.1%, which is also the first year-on-year decline for Tesla in four years.
With declining profits and declining sales, Tesla is quickly stopping the bleeding and getting the company back on track. With the strong entry of China's new energy vehicles, the market pattern has undergone earth-shaking changes, from catching up with Tesla to surpassing Tesla, the market has appeared more competitive models, such as BYD, Wenjie, Geely, users have more choices, the current market supply and demand relationship has changed, no longer Tesla is a monopoly, trams are also in excess of demand.
In addition, the cost of electric vehicles in the Chinese market has dropped significantly, and the cost of batteries used to account for more than 6 percent of the whole vehicle, but now it only accounts for about 3 percent. And Tesla's costs have remained high, leading to declining competitiveness. In addition, the subsidy for the purchase of new energy vehicles in North America has weakened, and the desire of users to buy is no longer so strong.
In addition to this layoff, Tesla has also adjusted the working hours of the factory, to be precise, reducing the working hours.
Tesla's Gigafactory in Austin, which originally implemented a 12-hour double shift, has now been reduced to 10.5 hours at night and 11 hours during the day.
Tesla's Shanghai Gigafactory shortened the production line for Model 3 and Model Y from 6.5 days a week to 5 days a week;
At Tesla's Texas factory, the shift of the Cybertruck production line was adjusted to shorten the working hours of employees.
It is not difficult to see that Tesla has made corresponding production changes according to the needs of various places.
Musk said: Be ready for the next phase of growth. Next, it depends on the feedback from the market, and of course I don't want this layoff fire to burn to Chinese car companies soon.