Tesla Suddenly Withdraws Summer Internship Offers Amid Significant Workforce Reductions‍

Tesla is withdrawing internship offers just weeks before the scheduled start of its newest group of interns, as reported by Bloomberg. This move extends the electric vehicle manufacturer's recent efforts to reduce costs and implement large-scale layoffs.

KEY FACTS

LinkedIn posts from a potential intern and an existing Tesla employee, as cited by Bloomberg, reveal that some interns have been informed that their summer internship offers have been revoked. Joshua Schreiber, a student at Miami University, disclosed that his internship was slated to begin in three weeks, and he had already invested a substantial sum in accommodation in anticipation of the internship. Diana Rosenberg, identified as a Tesla employee working in the battery supply chain according to her profile, expressed disappointment upon learning that a prospective intern had their offer withdrawn. She mentioned that the individual had declined "several appealing positions" in anticipation of joining Tesla for the summer.

The decision to rescind internship offers comes shortly after Tesla reportedly terminated its team responsible for developing vehicle chargers, resulting in approximately 500 job losses. Despite Forbes' request for comment, Tesla has yet to provide a response.

More than 3,000 university and community college students are recruited for internships and apprenticeships at Tesla annually, according to the company's latest impact report.

The exact proportion of internship offers rescinded by Tesla this year remains uncertain.

Tesla is currently navigating a significant round of layoffs that has resulted in the reduction of over 10% of its workforce. CEO Elon Musk announced in a staff memo last month that the layoffs would affect more than 10,000 employees. Additionally, Tesla recently dismissed its Supercharger team, including two executives overseeing the initiative, as reported by The Financial Times. In 2022, Tesla reduced its staff by approximately 3.5%. The company's stock performance has been lackluster this year, starting at $248 per share in January and declining to $179.99 per share as of Wednesday. Tesla's earnings report for the past quarter fell short of revenue expectations, marking the second consecutive quarter of missed earnings.

Forbes estimates Elon Musk's net worth at $197.7 billion, positioning him as the second-richest individual globally.

Source: Forbes