One out of every ten Tesla positions must be lost, according to Elon Musk. Some people may be looking for a way out already.
Tesla’s intentions, as revealed by Reuters in an internal email, are motivated by his “very awful feeling” about the US economy.After Musk issued a return-to-work ultimatum this week, some of the almost 100,000 employees at the electric carmaker may be weighing their options. Musk threatened to fire anyone who did not work 40 hours a week in an email emailed to employees Tuesday night, a stark contrast to the flexibility granted by Big Tech firms competing for the same talent pool.
For some Tesla employees, the workplace directive, combined with a significant decline in the company’s stock price this year – partially due to Musk’s costly pursuit of Twitter – and his outspoken support for the Republican party, is a poisonous mix.
“Tesla is kicking off its own local Great Resignation,” according to Stanford University economics professor Nicholas Bloom, who predicts that 60% of staff will return to work full-time, 10% will quit, and 30% will hunt for another job.
A request for comment from Tesla went unanswered right away.Sensing an opportunity, a few tech businesses jumped in.Scott Farquhar, Australia’s third wealthiest man and co-founder of software company Atlassian, recently tweeted about aspirations to expand and give freedom. He went on to say, “Any Tesla employees interested?”
Is Covid-19 making people loosing their jobs again?
Following the COVID-19 outbreak, an increasing number of computer employees who are accustomed to working from home or on a hybrid basis are refusing to return to work full-time.
According to Reuters, one former Tesla engineer recently accepted a job at Alphabet due to a lack of work-life balance, which included pressure to come into the office during the epidemic.
He just has to come to work three times a week at Google, he claimed, because some of his team colleagues work remotely. “They are not less productive, but substantially happier,” he remarked of his pals who work from home. Another former Tesla engineer said he was forced to work in the office during the 2020 pandemic and received Covid twice – before switching to Apple.
Stock compensation that is greater
Tesla engineers are seeing their stock-based pay plummet as the fear of layoffs and the return-to-office edict looms. Tesla is dealing with some of the same issues that other businesses are dealing with, such as Chinese government restrictions.Despite Musk’s claim that he spends little time on Twitter, investors are concerned that his $44 billion pursuit of the social media platform is diverting his attention.
Tesla’s shares dropped 9% on Friday after Reuters reported on Musk’s planned layoffs and Twitter announced that the Musk takeover had cleared antitrust scrutiny in the United States. Since Musk announced his stock acquisition in early April, the stock had already dropped almost 30%, roughly double the Nasdaq index’s decline.
“If this trend continues, they will undoubtedly face a retention issue. You’re dealing with two situations. You’ve got Elon Musk talking controversial things that don’t appeal to everyone. You’ve also got the stock price plummeting “Michael Solomon, the founder of 10x Ascend, a compensation negotiating advisory business, agreed. According to Tesla’s securities filing this year, stock options account for a larger part of CEO compensation than at its competitors. If the stock price does not rise, that portion of the remuneration may be worthless.
According to former and present Tesla employees and data obtained by Reuters from job sites Blind and Glassdoor, Tesla employees earn annual bonuses in the form of stock and have lower cash compensation than their contemporaries at big tech companies.Tatiana Becker, the founder of NIAH Recruiting, a startup recruiting agency, recently ran an email marketing campaign to Tesla employees and obtained 14 percent answers, compared to a regular top rate of 10%.
Musk’s branding and personality
To be fair, Musk’s abrasive attitude has aided in the development of the Tesla brand, allowing it to expand without the use of marketing, and instilling a feeling of duty in many Tesla employees related to the man and his climate aims. “It’s how we’re wired,” a former Tesla engineer explained. “Long hours and terrible working conditions are the norm for some.”
In the face of diminishing demand, rival tech businesses are slashing positions or halting or pausing hiring, perhaps limiting the willingness of some Tesla employees to leave. However, other employees, notably liberal tech workers in Silicon Valley, are offended by Musk’s recent embrace of a new partisan political identity. “Some individuals adore him and would go to great lengths to work for one of his enterprises. Others may say things such, “I don’t agree with his management style.””
The billionaire has used his massive Twitter following to criticise Democratic lawmakers, and he has pledged to restore former President Donald Trump’s account as part of his campaign for the microblogging site. He has also stated that he will vote Republican.
“This is highly offensive to some individuals,” Solomon, the recruiter, said. “These are people with a lot of options when it comes to job.” “There are folks that find this repulsive,” Solomon, the recruiter, said. “These are people who have a lot of options when it comes to work.” Many Tesla employees will stay put until the stock recovers, according to a former Tesla executive who described stock awards as “golden handcuffs” that prevent people from quitting.
“However, if they believe the Tesla stock price will continue low, they are more inclined to leave: their large bonus is no longer so large.”