The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture For Transport Equipment Manufacture Of Motor Vehicles, Trailers And Semi-Trailers 29.10 - Manufacture of motor vehicles
4,000 jobs Number of planned job losses
Announcement Date
12 June 2018
Employment effect (start)
12 June 2018
Foreseen end date
30 June 2018
Description
In an email sent to its employees, the CEO of Tesla, has announced that the company will lay off about 9% of its worldwide workforce. Therefore, about 4,000 people will leave the company in the next weeks. The layoffs will primarily affect salaried employees, sparing production-line workers as the company ramps up Model 3 production. The job cuts will occur on 'some job functions that were no longer necessary', added the CEO.
During Tesla's first-quarter earnings call in May, the CEO said the company would begin restructuring operation with the aim to meet its profitability goals. The restructuring would entail 'flattening the management structure', but dismissals weren't mentioned; the new decision has surprised Tesla' employees.
Sources
12 June 2018: Businessinsider
14 June 2018: Businessinsider
Citation
Eurofound (2018), Tesla, Internal restructuring in World, factsheet number 94323, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/94323.
Digitisation and automation technologies, including artificial intelligence (AI), can affect working conditions in a variety of ways and their use in the workplace raises a host of new ethical concerns.
The retail banking sector is fertile ground for studying the impacts of digitalisation on work and employment. Financial services are increasingly provided online, without the intermediary of customer-facing institutions.
European labour markets have recovered strongly from COVID-19. By the end of 2021, little more than 18 months after the start of the pandemic, employment rates in the EU were almost at pre-crisis levels.
