Business
‘To reduce costs’ — Tesla to lay off 10% of global workforce
Tesla will lay off 10 percent of its global workforce as demand for electric vehicles (EV) falls.
According to a Bloomberg report on Monday, Elon Musk communicated the retrenchment in a memo sent to workers at the automotive company.
Musk cited duplication of roles and the need to reduce costs as reasons for the cutback.
“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,” Musk wrote.
“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 per cent globally. There is nothing I hate more, but it must be done.”
Responding to a comment on the planned layoff on X, Musk said “about every five years, we need to reorganize and streamline the company for the next phase of growth”.
If the cuts apply companywide, the dismissal would amount to more than 14,000 employees, the publication noted.
Tesla ended 2023 with 140,473 employees — nearly double its workforce three years ago.
The decision to lay off workers comes as Tesla faces declining sales and an intensifying price war for EVs.
According to the publication, Tesla announced that vehicle deliveries early this month missed expectations by a wide margin — posting its first quarterly decline in four years.
“Several analysts are bracing for the EV maker’s sales to potentially shrink for the year, citing slow output of its newest model — the Cybertruck — and a lull in new products until the company starts producing a next-generation vehicle late next year,” the publication said.
“The EV slowdown Tesla has felt of late has been widespread. China’s BYD Co. delivered just 300,114 battery-electric vehicles in the first quarter, down 43 per cent from the final three months of last year, when it briefly pulled ahead as the world’s top EV seller.”
Manufacturers including Volkswagen AG, General Motors Co., and Ford Motor Co. have delayed, dialled back or altogether scrapped EV projects as customers protest high prices and a scarcity of charging points.
Business
Governor Obaseki increases minimum wage to N70k, names Labour House after Oshiomhole
Godwin Obaseki, governor of Edo, has announced a new minimum wage of N70,000 for civil servants in the state.
The governor made the declaration on Monday while inaugurating the Labour House.
Obaseki named the Labour House after Adams Oshiomhole, senator representing Edo north and former governor of the state.
The new minimum wage regime in Edo will take effect from May 1, 2024, the governor said.
The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have been agitating for a new minimum wage for workers across states, on the back of economic reforms by the President Bola Tinubu administration.
The removal of subsidy on petrol and unification of the forex windows in 2023, immediately led to food inflation and a spike in the prices of other goods and services.
The national minimum wage has been pegged at N30,000 since April 18, 2019. However, this sum has been described as “grossly inadequate” and “poverty wage” in the face of prevailing economic hardship.
There are insinuations that a new national minimum wage will be announced by the president on May Day.
Business
FG, Bill Gates propose digital identity platform to ease tax collection
Bill Gates, former chief executive officer (CEO) of Microsoft, says he is working with the federal government (FG) on an identity technology platform for easy tax collection.
Gates spoke during a meeting with President Bola Tinubu on the sidelines of the World Economic Forum (WEF) in Saudi Arabia on Sunday.
According to a statement by Ajuri Ngelale, the presidential aide, Gates said the technology would help with payment efficiency and also make tax collection easier.
“We are working with Mr. Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, on digitisation,” Gates said.
“Before you came into office, there were a few things attempted in identity management. But they have been very scattered. There have been multiple identification systems.
“Now, there is a plan to take that technology called MOSIP and use it for this identification platform so that people can get digital benefits. We are providing support for that, and we can provide more support.
“With MOSIP ID, there is potential application in all government payment programmes.
“It helps with payment efficiency and bank accounts, and eventually, when everyone is using that, it makes tax collection easier.
“That benefit will take a few years. However, there will be more bank accounts, more financial inclusion, and effective government payment programmes.”
Also the co-chair of the Bill and Melinda Gates Foundation, the businessman said Nigeria has the capacity to manage “this system and related-technological systems as the nation brims with talented youths”.
In his remarks, Tinubu said his administration will look into the technology proposed and work on it further.
‘TECHNOLOGY, A POTENTIAL WEAPON AGAINST CORRUPTION’
He said technology is a potent weapon against corruption and financial impropriety in public service.
The president reiterated his unwavering commitment to providing reliable technology that will support a national consumer credit system and many other critical interventions for all Nigerians.
He said resistance is often expected when efforts are made to strengthen systems and forestall malfeasance.
“Technology is the enemy of fraud, corruption, and irregularity. We have been working hard on improving technology,” Tinubu said.
“There is always the initial resistance.
“Corruption, self-interest, and fraudulent activity will always be an enemy, but when you bend that curve, you will receive the benefit. The nation will receive the benefit.”
Recounting how he deployed technology to enhance the revenue base of Lagos state during his time as governor, Tinubu said his administration must invest in technology, especially as the state aims to achieve a trillion naira revenue target.
Business
Naira is depreciating because I was out of the country, says Odumeje
Chukwuemeka Ohanaemere, the self-styled Onitsha-based pastor better known as Odumeje, says he will stop the naira from further depreciating against the dollar.
Odumeje spoke at the airport when he returned from London.
The cleric travelled to the UK earlier this month to host a comedy show. He often boasts that he possesses a plethora of spiritual powers, which he releases periodically to fix issues plaguing society.
He had boasted of being behind the naira’s appreciation with one of his powers, when the currency gained 12 percent against the dollar in early April, building on a 14 percent surge in March.
On Friday, the naira depreciated to N1,320 to the dollar at the parallel market.
At the official window, the local currency depreciated by 2.24 percent to N1,339.23 against the dollar on Friday, from N1,309.88 on April 25.
However, Odumeje said he is back to stop the naira’s slide like he has always done.
“This is Indaboski Bahose. The war and the battle. A man full of power and activities. The only man who tells you ‘I will bring down the dollar’ and gets it done. When I left the country, dollar began to rise; now, I am back, I will continue where I stopped,” Odumeje said.
On April 8, the local currency strengthened to N1,120 to the dollar at the black market and N1,230 at the official window.
Odumeje had taken credit for the naira’s appreciation at the time.
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