'Not practical': Internet weighs in as Elon Musk announces 14,000 Job cuts amid drop in Tesla demand

AUSTIN, TEXAS: When it comes to business, we know Elon Musk is ruthless!

The Tesla owner has asked his employees to brace for job cuts after demand for electric vehicles has gone down.

Musk conveyed to the staff that the reduction of over a tenth of the workforce "must be done," which is approximately 14,000 jobs.

“We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 percent globally," he said.

“There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”

What does the number say about Tesla?

The carmaker said it had made around 387,000 deliveries to customers in the first quarter of 2024, and the number is 13% less than their expectation.

Interestingly, it marked the company's initial decline in deliveries in almost four years. Following an assessment, the company attributed production issues to unforeseen factors.

This encompasses assaults on shipping in the Red Sea and an arson attack on its factory in Berlin. Nonetheless, Elekrek reports a decline in global demand as well.

Ross Gerber, CEO of the investment management firm Gerber Kawasaki and a vocal critic of Musk's leadership, also responded to the job cuts.

“[Job culling is] proof of the true cost of the damage to the brand as Tesla sales fall in a strong economy.”

Gerber, who has a small shareholding in Tesla, added, “No doubt the combination of a lack of advertising, real competition, and a toxic CEO is a bad mix.”

Tesla has manufacturing sites in California, Nevada, New York, and Texas in the US, and units in Germany and China, per The Guardian.

“About every five years, we need to reorganize and streamline the company for the next phase of growth,” Musk commented in a post on social media.

Netizens give their take on Tesla's job cuts

The internet responded to Elon Musk's decision regarding job cuts and the decline in demand for Tesla vehicles. 

One user wrote, "There are more electric cars but more choice too as other companies had to jump in to compete in the market. I will stick to Diesel..." [sic]

Another user commented, "I’ll never have time in my life to search for charging stations, then wait for ages for others to charge to then have to do it all again when it drains…. "

"Love his ability to be real, raw and genuine. Mad respect," an online user appreciated Musk's decision. 

One user opined, "Great news, but shame about the redundancies."

"They’re a fashion statement, not practical, the infrastructure is cosmetic to keep them moving on the road," one user complained.

A user said, "Competition from more reasonably priced EVs is playing a larger role."

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.