Tesla’s Summer Internship Program Cut Amid Cost-Cutting Measures

News Mania desk/Agnibeena Ghosh/4th May 2024

Tesla Inc. has announced the cancellation of its summer internship program just weeks before the anticipated start date, leaving aspiring interns scrambling to secure alternative opportunities. The abrupt decision has sparked dismay among affected students, who have taken to social media platforms like LinkedIn to seek new employment prospects.

Joshua Schreiber, a student at Miami University, shared his experience of receiving an email containing flight information from Tesla, only to have his internship offer rescinded a few hours later. Schreiber, along with numerous other prospective interns, lamented the sudden turn of events, expressing frustration over the lack of time to secure alternative arrangements for the summer.

In response to the internship cancellations, Tesla employees have mobilized efforts to support affected students. Diana Rosenberg, an employee working in battery supply at Tesla, appealed to her professional network on LinkedIn to assist in finding placements for the displaced interns. The decision to revoke internship offers has been attributed to the ongoing layoffs at the company, which Elon Musk announced last month, citing the need to reduce the global workforce by more than 10%.

Despite the financial implications of rescinding internship offers, Musk remains committed to cost-cutting measures amid challenges such as declining electric vehicle sales and ambitious investments in autonomous driving technology. Reports suggest that Musk aims to achieve a 20% reduction in headcount across the company, prompting significant restructuring efforts.

While the decision to revoke intern offers may not yield substantial cost savings, it carries implications for Tesla’s hiring pipeline. Each year, Tesla recruits over 3,000 university and community college students for internships, forming a vital component of the company’s talent acquisition strategy. The cancellation of internships underscores the broader impact of Tesla’s cost-cutting initiatives on its workforce and recruitment efforts.

For affected students, the internship cancellations serve as a poignant lesson in resilience and adaptability. Brook Gura, a communications student at the University of Texas at Austin, reflected on the experience as a redirection in her professional journey, acknowledging the disappointment while embracing the opportunity for personal growth.

Despite the challenges posed by the internship cancellations, affected students remain optimistic about their future prospects. While Musk declined to comment on the matter, the episode highlights the complexities and uncertainties facing both aspiring interns and companies amid evolving economic conditions and organizational priorities.