Tesla Cuts Over 10% of Global Workforce Amid Dropping Sales
- Written by Deep Shikha Content Writer
- Fact-Checked by
Tesla is laying off over 10% of its staff, affecting at least 14,000 employees, in response to dipping sales and growing competition in the electric vehicle sector. The layoffs were revealed in an internal email ( first reported by Electrek on April 14), later confirmed by CEO Elon Musk in a post on X .
In an internal email disclosed by Electrek, Tesla CEO Elon Musk emphasized that such restructuring is essential every few years to pave the way for Tesla’s future growth. He stated, “There is nothing I hate more, but it must be done.”
Musk also thanked departing employees for their contributions and highlighted the crucial role of the remaining team in Tesla’s future innovations.
According to Electrek , Tesla’s latest actions hinted at these layoffs. Recently, the company instructed managers to pinpoint essential team members and discontinued certain stock rewards. It also canceled some annual performance reviews and scaled back production at its Gigafactory in Shanghai.
The announcement also aligns with the resignations of 2 senior Tesla executives, Drew Baglino , Senior Vice President of Energy and Powertrain, and Rohan Patel , head of policy. Their departures, along with recent exits like CFO Zach Kirkhorn’s, have sparked concerns about the stability and future leadership of Tesla.
This decision comes after Tesla reported its first annual decline in vehicle deliveries since 2020, amid tough competition from Chinese EV makers and a strategic shift from mass-market vehicles to advanced projects like robotaxis. Concurrently, Tesla has also dropped plans for the affordable Model 2 car , marking a significant change in strategy.
Reuters mentioned that Musk had previously announced layoffs in 2022 due to economic worries. Tesla’s employee count still increased from roughly 100,000 at the end of 2021 to over 140,000 by the end of 2023, as per filings with U.S. regulators.
According to Electrek, Tesla’s next quarterly earnings report is scheduled for release on Tuesday, April 23. Analyst expectations suggest a profit of approximately 50 cents per share, a drop from 85 cents per share in Q1 2023.
Industry analysts suggest that Tesla’s layoffs and executive departures point to larger problems within the company. Some view these actions as essential for aligning with strategic goals, while others see them as signs of deeper growth challenges. These developments are stirring discussions among investors about Tesla’s future in a competitive and fast-changing electric vehicle market.
Samsung Regains Dominance in Global Smartphone Market
- Written by Deep Shikha Content Writer
- Fact-Checked by
Samsung regained its position as the world’s leading smartphone vendor in the first quarter of 2024 after briefly losing ground to Apple in 2023. According to a report released by the International Data Corporation (IDC) on April 15, Samsung shipped 60.1 million units, securing a substantial 20.8% share of the global market.
According to Engadget , this performance is impressive considering the overall market dynamics, where both Samsung and Apple experienced declining shipment volumes compared to the same quarter last year. Samsung’s shipments saw a minor decline of 0.7%, which pales compared to Apple’s 9.6% drop. Apple shipped 50.1 million units, accounting for 17.3% of the market in the first quarter of 2024.
The top 5 smartphone manufacturers — Samsung, Apple, Xiaomi, Transsion, and OPPO — still dominate the market, as per IDC reports. Transsion has moved to 4th place, ahead of OPPO, with 28.5 million units shipped. Xiaomi also remains competitive, with 40.8 million units shipped.
The IDC highlights a couple of key trends shaping the market: a rise in average selling prices and a strategic shift among the leading brands. Consumers are increasingly opting for higher-end devices. This indicates that consumers are always willing to invest more in smartphones they intend to use for longer periods.
As the market recovers, top manufacturers are also adjusting their strategies accordingly.
Ryan Reith, group vice president with the IDC’s Worldwide Mobility and Consumer Device Trackers, suggested that leaders Samsung and Apple are pushed to innovate as brands like Xiaomi and Huawei grow.
Samsung may release new foldables as early as July, building on its established Galaxy Z Flip and Z Fold models. It is rumored to be developing both a high-end and more affordable version of the Z Fold, as SamMobile and Galaxy Club report.
Meanwhile, Apple’s upcoming iPhones set to release in September are anticipated to feature modest hardware upgrades but significant AI-driven software enhancements, according to Bloomberg . This hints at Apple’s effort to remain competitive with Android devices that continue to innovate with new foldable technologies and AI capabilities.
Samsung’s comeback clearly points to its strong market position and the ability to adapt and succeed even in tough conditions. Nabila Popal, IDC’s research director, mentioned, “Samsung is in a stronger position overall than in recent quarters,” suggesting that Samsung might adopt a more aggressive market strategy. Changes among the top 5 manufacturers indicate continuous adjustments, leading to constantly changing competition in the smartphone market.
