Elon Musk does it again. Ever since Musk took over Twitter, the social media company has been in the news for headcount reduction. The company fired about 200 employees or 10% of its workforce, over the weekend, as per a report by The New York Times.
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This time the layoffs included employees performing key roles in the company, including product managers, data scientists, and engineers. Also, the list contains Esther Crawford, who oversaw the Twitter Blue subscription service and the company’s payments project.
The most recent move would mark the company’s second attempt to reduce costs through layoffs. Earlier in November 2022, Twitter had eliminated about 50% of its employees. In fact, the takeover of Twitter began with a series of layoffs, including that of senior management.
For Musk, layoff seemed necessary as the company had been losing $4 million each day due to a considerable drop in advertising revenue. It is worth mentioning that last month The Information reported that daily revenues fell by 40% on a year-over-year basis. The fall came after more than 500 of the company’s top advertisers paused their spending on the platform.
Tesla Layoffs
As part of a performance review cycle conducted every six months, Tesla (NASDAQ:TSLA) laid off 4% of the employees in the Autopilot labeling team in Buffalo earlier this month. In December 2022, Electrek reported that Tesla is likely to lay off additional employees in the first quarter of 2023 and freeze hiring as well. The cost-cutting move was taken due to fears of a potential recession.
What is the Price Target for Tesla Stock?
Wall Street is cautiously optimistic about Tesla stock, with a Moderate Buy consensus rating based on 22 Buys, six Holds, and three Sells. The average TSLA stock price target of $204.96 implies the stock is fairly valued at current levels.
