Tesla lays off 10% of its employees in a workforce cut, with some pointing out that the company lost top talent
Tesla, hit by a decline in its operating profit margin, has announced that it will lay off more than 10% of its global workforce. It has already implemented workforce cuts, and it is known that senior executives who have worked at the company for more than 10 years have left the company.
Tesla laying off more than 10% of staff globally as sales fall | Reuters
Tesla layoffs hit high performers, some departments slashed, sources say | TechCrunch
Tesla layoffs: 10% of employees impacted, read the Elon Musk memo
https://www.cnbc.com/2024/04/15/tesla-shares-dip-in-premarket-trade-on-global-layoff-reports.html
According to an email sent by CEO Elon Musk to employees, more than 10% of Tesla's workforce will be laid off in order to cut costs and improve productivity. Tesla will have more than 140,000 employees by the end of 2023, and this layoff is expected to affect around 14,000 people.
Tesla has been hit by its first sales decline in three years due to a slowdown in EV demand, with deliveries falling 8.5% year-over-year in the first quarter of 2024. Operating margin pressure has been ongoing for several quarters, and Tesla has warned investors that 'sales growth in 2024 may be significantly slower than historically.'
As a result of personnel cuts made in the wake of these worsening business results, Tesla's powertrain and energy executive Drew Baglino and public policy and business development executive Rohan Patel have already left the company. Baglino, who has worked at Tesla for 18 years, said, 'I decided to leave because of major systemic changes at the company. This is good for me and good for Tesla. It was a difficult decision.'
Musk thanked Baglino, saying, 'Thank you for all you've done for Tesla. Very few people have contributed more than you.'
Thanks for everything you've done for Tesla. Few have contributed as much as you.
— Elon Musk (@elonmusk) April 15, 2024
According to technology media TechCrunch, some teams have had as much as 20% of their workforce laid off, and sources say there are complaints within the company that 'many of the employees who were let go were high-performing.'
Tesla shipped a record 1.8 million EVs in 2023, but its operating margins declined. As of April 2024, the company has canceled plans to manufacture low-cost EVs, and is in the process of building the foundations for a robot taxi that Musk said will debut in August.
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