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- 🎉 MASSIVE layoffs just announced...
🎉 MASSIVE layoffs just announced...
Read time: 2.5 minutes
Good Afternoon Party People! 🎉
Welcome back to another edition of Office Party. We hope you all survived tax day.
We’re here to brighten your day like a big, fat ol’ tax return.
PARTY PLAN 🎉
🏎️ Biggest layoffs of the year
🏢 Gen Z loves the office
✖️ AI talent war
And, of course, MEMES!
MEME OF THE DAY
Me to myself after the slack message gets a few laughs
LAYOFFS
MASSIVE Layoffs at Tesla
According to a company-wide memo sent out by Elon Musk, Tesla will be reducing its headcount by more than 10%…which means more than 15,000 people will be out of jobs.
Elon responded by stating that Tesla needs to reorganize every few years.
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity. As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally.”
@baglino@rohanspatel About every 5 years, we need to reorganize and streamline the company for the next phase of growth
— Elon Musk (@elonmusk)
Apr 15, 2024
Tesla shares are down 31% YTD and were down 3% in premarket on Monday when this news was first reported. Economists are predicting the mass layoffs to send large economic ripples through cities like Austin where Tesla has a big presence.
Layoffs in 2024 at a glance:
74,000 tech employees have now been laid off across 255 companies in 2024.
Tesla now has laid off the most employees of any tech company this year.
Will there be more massive layoffs in 2024? |
RTO
Gen Z Prefers the Office
Gen Z loves the office. Going to it, that is (not the TV series). The Zoomers are trading in their Zoom avatars for cubicles…on purpose!
According to new data from the Bureau of Labor Statistics, 91.8% of US workers between 16-24 years old worked completely in person in February. Of the nearly 19 million workers in the survey, only 3.2% worked fully remote, and only 4.9% were on a hybrid schedule.
(Of course, many of the workers in the 16-19 age group have retail jobs that require them to show up in person, so the numbers are a bit skewed).
However, the sentiment towards in-person work is still very positive on average.
According to a report from Seramount, a professional services firm, only 11% of Gen Z would prefer to be fully remote, compared with 34% of non Gen Z.
(One sniff of a coworker microwaving fish in the office and they’ll be wishing they worked remotely)
And now there is even a TikTok trend of young workers showing off their decorated cubicles, office outfits, and “work besties.”
According to the US surgeon general, the extra face-to-face interactions are a good thing because it’s helping to combat the “loneliness epidemic.”
From a career development perspective, it also benefits Gen Z workers to be in the office.
A survey from LinkedIn found that 76% of Zoomers are interested in more learning opportunities at work - which are more accessible to employees in the office.
I'm team... |
AI
The Great AI Talent War
Elon Musk says he’s being forced to raise salaries for engineers at Tesla because Sam Altman and OpenAI are aggressively poaching their best workers.
(Maybe that’s part of the reason for the massive layoffs at Tesla)
First, Elon schedules a cage fight with Mark Zuckerberg, now he’s in a recruiting fight with Sam Altman!
The announcement came in response to a story published by The Information which claimed that Elon was poaching engineers from himself.
Musk’s new startup, xAI, has been stealing AI engineers from Tesla, but it wasn’t a big deal because both companies are run by Elon. But when OpenAI’s CEO started to poach, things got real.
(It was recently announced that xAI is in talks to raise $3 BILLION at an $18 billion valuation to compete with some of the heavy hitters in the space)
"They have been aggressively recruiting Tesla engineers with massive compensation offers and have unfortunately been successful in a few cases.”Â
This isn’t the first story of its kind in recent weeks. Mark Zuckerberg has been personally emailing AI engineers at Google and other big tech companies.
It doesn’t seem like there’s any real bad blood between the billionaires (besides the potential cage fight), but they are forcing each other to pay their employees better, so let the wars continue!
"The talent war for AI is the craziest talent war I've ever seen!” - Elon
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