The electric carmaker has begun asking managers to identify which employee roles on their team are vital to the company, according to a report from Bloomberg on Wednesday.
The company has also recently canceled some of its employees’ performance reviews, people with knowledge of the issue told Bloomberg.
Tesla has performance reviews twice a year, but salaried workers are only eligible for a promotion or bonus once a year, four workers told Business Insider. The company said on its website it rates employees on a scale of one to five.
A spokesperson for Tesla did not immediately respond to a request for comment.
Elon Musk has been known for his cost-cutting efforts across his companies. The billionaire cut Twitter’s workforce in half after he purchased the company in 2022. Ahead of layoffs at the social media company, the billionaire asked team leaders to create lists of top performers based on performance reviews and code reviews.
Last year, in a sign Tesla might be slowing down its hiring, the Tesla CEO told staff he must approve all new Tesla hires.
During Tesla’s earnings call earlier this year, Musk warned of a sales slowdown in 2024 and said workers will be practically “sleeping on the line” as they work to ramp production for Tesla’s next-gen vehicle platform.
Over the past year, the automaker has continually slashed prices for its vehicles and tried its hand at advertising for the first time in the company’s history. Tesla is also facing increased competition from Chinese automakers.
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