Some Tesla employees are concerned that layoffs are coming

• Tesla workers fear layoffs could begin as early as this weekend.
• This follows earlier speculation in February when Tesla temporarily delayed a performance review.
• Tesla’s deliveries fell short of Wall Street’s expectations in its first quarter.

Some Tesla employees they are concerned that layoffs are imminent, possibly as soon as this weekend.

Rumors are swirling in Tesla’s offices that layoffs are imminent, seven engineers — including from the Austin plant and the Fremont plant — told Business Insider. While there has been no official communication to the team, some employees said they have heard the cuts could begin as soon as Sunday.

Two other employees said they hadn’t heard talk of layoffs, while others said they weren’t taking it too seriously.

“There have been whispers and some people are worried, but you know how false rumors can spread in a company this big,” said one engineer.

A Tesla spokesman did not immediately respond to a request for comment.

This is the second time in as many months that concerns about possible layoffs have entered Tesla. In February, the car maker reportedly called on management to start identify the most important roles to the company. Meanwhile, Tesla also delayed employee performance reviews, Bloomberg reported. The comments were later revised, three sources told Business Insider.

Workers across the tech industry are likely to be on alert for any sign of potential layoffs. Several Big Tech companies, including Google and Microsoft, already have made the cut this year. EV rivals like Rivian and Fisker too laid off workers in 2024.

And Tesla has faced headwinds recently.

Tesla’s first quarter Shipping numbers revealed a drop in sales, for example. The automaker’s shipments fell 20% from the previous quarter and more than 8% from the same time last year, marking the company’s weakest year-over-year sales since 2020.

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