Tech layoffs have been in the spotlight over the past few months as companies are scrambling to squeeze every bit of the cost leverage to counter shrinking toplines. Tesla Inc. TSLA, which could rightfully be called an auto-tech company, defied the industry-wide job cuts and added people to its workforce in 2022.
What Happened: Tesla’s full-time employee count, including those employed by its subsidiaries worldwide, totaled 127,855 at the end of 2022, the Austin, Texas-based company said in its 10-Q filed with the SEC on Monday. This marked a 29,000 increase from the levels in 2021.
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Incidentally, Tesla was among the earliest to announce job cuts in June 2022. CEO Elon Musk said in an email to employees that he was planning to cut 10% of the salaried workers, adding that the company had become overstaffed in many areas. He clarified that the corporate action will not affect those building cars, battery packs or installing solar. Hourly headcount will increase, Musk had said then.
Subsequently, an Electrek report said in December that Tesla was planning to freeze hiring and would announce more job cuts in the first quarter of 2023.
The payroll expansion at Tesla, as seen in the regulatory filing, shows that the company continued to hire even amid the eliminations.
Why It’s Important: The massive layoff in the tech industry accelerated late last year. Since the start of 2023, about 241 tech companies have cut about 77,916 positions, according to Layoffs.fyi, which tracks job cuts through multiple sources.
Amazon Inc. AMZN implemented multiple rounds of job cuts, with the latest announcement made earlier this year envisaging the elimination of 18,000 jobs. Alphabet Inc. GOOGL GOOG and Microsoft Corp. MSFT also announced plans to cut 12,000 and 10,000 jobs, respectively, this year.
Tesla’s hiring spree sends a positive signal about the company. Although demand and supply concerns led to a rare delivery miss in 2022, the EV maker is planning a strong comeback this year. On the earnings call, Musk said internally, the company targets production of two million vehicles, suggesting the year’s growth would exceed its target of 50%.
Price Action: Tesla closed Tuesday’s session at $173.22, up 3.94%, according to Benzinga Pro data.
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