Tesla Cutting About 9% of Global Workforce Link: https://www.wsj.com/articles/te

Question

Tesla Cutting About 9% of Global Workforce

Link: https://www.wsj.com/articles/tesla-cutting-about-9-of-global-workforce-1528827145

Tesla will be cutting 9% of its workforce, or approximately 3500 employees, in order to help ramp up production of the Model 3 sedan. Salaried staff is the primary target for the job cuts. The news of the upcoming job cuts boosted Tesla shares by 3%. In addition to ramping up production, the jobs cuts are designed to free up some cash as Tesla has yet to generate a profit in its 15-year history. In terms of management, Tesla hopes that having a lean management structure will improve communication and allow it to operate more efficiently.

can you helpe answering the following:

1. One analyst mentioned that cutting headcount will actually result in more delays and more stress. Do you agree?

2. Should Tesla focus on its current product portfolio for now, or should it continue to pursue its aggressive production targets in order to compete with larger and more established automakers?

Explanation / Answer

Answer 1)

No , I don't agree with the thought of analyst , as it clealy metion that almost all of the job cut  made from salaried class of employees , which doesn't include production associates. so there will be no impact on the production process and schedule.

Answer 2) Tesla is not getting profit from its last 15 years of operation from existing market . The strategy is right to explore new market by adding more products in its portfolio , mainly to target upcoming developing economies.

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