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How much will Tesla save with job cuts?

How much will Tesla save with job cuts?

His remarks came only two days after Musk said that the automaker will have to slash 10% of its workers. Musk wrote an email to Tesla executives, claiming he was concerned about the status of the US economy and that the company needs to slash 10% of its personnel. The world's largest electric vehicle (EV) manufacturer and its subsidiaries had approximately 100,000 employees by the end of 2021. Musk issued an email to Tesla employees on Wednesday requesting a minimum of 40 hours of office work per week before revealing the increases in workforce figures. He added that who will not show up in office, they will take it as a resignation.

According to Goldman Sachs analyst Mark Delaney, a 10% staff decrease would result in annual opex savings of $0.225-$1.0 billion. In a client note, Delaney said, "Our base case assumption is that opex including SBC would climb by around 255 million USD each quarter from 2Q22 to 4Q22, 1.9 billion USD in 2022 year over year, and 2.6 billion USD in 2023 year over year." "Each 100 million USD in opex equals 0.06 USD - 0.08 USD in EPS."

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Movement of Tesla in last five years period. (Source: Trading Economics)

Sources:

https://tradingeconomics.com/tsla:us

https://www.universalpersonality.com/tesla-as-musk-clarifies-staff-cuts-goldman-sachs-calculates-savings/

https://www.streetinsider.com/Analyst+Comments/Tesla+%28TSLA%29%3A+As+Musk+Clarifies+Staff+Cuts%2C+Goldman+Sachs+Calculates+Savings/20177014.html

https://www.investing.com/news/stock-market-news/tesla-as-musk-clarifies-staff-cuts-goldman-sachs-calculates-savings-432SI-2833860