Another round of layoffs at X? Elon Musk asks managers to name top performers in their teams

Elon Musk may be planning another round of mass layoffs, fear people working at the company. This comes just days after Musk, the Chief Technical Officer at the social media platform asked all managers to list out the top performers in their team.

The tech industry is experiencing a resurgence of job cuts, albeit not as extensive as the mass layoffs witnessed in 2023, impacting numerous employees across various departments worldwide.

Recent announcements from industry giants including Google, Meta, Amazon, and Snap reveal plans for reducing employee counts as part of corporate restructuring initiatives.

Musk, who previously executed substantial layoffs at X, is allegedly considering similar measures at Tesla. Bloomberg reports indicate that Musk has instructed Tesla managers to assess employee roles, identifying critical positions.

Departing from the usual semi-annual performance review meetings, managers are now tasked with providing concise evaluations for each employee, prompting concerns regarding imminent job cuts.

This evaluation approach appears to align with Musk’s cost-cutting strategy, a response to Tesla’s decelerating sales growth. Known for his rigorous leadership style, Musk previously urged X employees to adhere to his “hardcore” philosophy.

Despite most tech companies, including X, grappling with revenue declines and poor market performance, Tesla’s stock continues to thrive, reflecting investor confidence. Tesla’s workforce has doubled since 2020, exceeding 140,000 employees by the end of the previous year.

The company’s trajectory, marked by milestones such as the Model 3 and Model Y launches, anticipates further expansion with the introduction of an affordable vehicle slated for release next year.

To support its vision of pioneering innovative electric vehicles and other ventures, Tesla has invested over $10 billion this year.

However, despite revenue growth and an expanding workforce, Tesla is exploring avenues to streamline costs. Reports suggest that these cost-reduction efforts might coincide with increased research and development spending.

Although Tesla has not officially confirmed any layoffs, CFO Vaibhav Taneja emphasized the necessity for cost efficiency during a recent earnings call. The potential impact of such measures on employees remains uncertain.

Since the onset of 2024, the tech industry has witnessed over 32,000 job cuts. Major players like Google, Microsoft, and Meta have announced workforce reductions as part of restructuring endeavours.

According to Layoffs.fyi, over-hiring during the pandemic and recent interest rate adjustments are key factors driving these targeted, albeit smaller, layoffs compared to the previous year.

Furthermore, the burgeoning demand for artificial intelligence (AI) talent is reshaping workforce dynamics, with companies such as OpenAI, Microsoft, and Google reallocating resources to prioritize AI-related roles. Thus, while layoffs prevail in certain sectors, there is a simultaneous surge in hiring within the AI domain.