In a significant move reflecting the ongoing trend in the tech industry, Tesla has reduced its workforce by more than 20,000 employees across various departments. This decision is part of a broader strategy as major firms, including Cisco, Microsoft, SAP, and Intel, collectively laid off approximately 150,000 workers in 2024.
Tesla's CEO Elon Musk has emphasized a strict approach to layoffs, implementing a directive to be 'absolutely hard core' in workforce reductions that affect both junior and senior roles. The company aims to save $10 billion by 2025, focusing on streamlining operations and improving financial performance.
Other notable layoffs include nearly 10,000 employees cut by Cisco in two rounds this year, and a significant reduction of 6,700 workers by a ridesharing firm as it adapts to post-pandemic demand shifts. In total, the tech sector is undergoing a major restructuring to meet evolving market conditions.