Tesla lays off more than 10% of global workforce, at least 14,000 employees, in major restructuring push per internal memo.
Tesla CEO Elon Musk is cutting down 10% of Tesla’s global workforce, which could impact at least 14,000 employees globally as part of a major reorganisation and cost-cutting push.
The layoffs come just a few weeks after Tesla reported its first year-over-year drop in vehicle deliveries since 2020. In an internal email obtained by Electrek, Musk cited the need to “streamline the company for the next phase of growth” as the reason for the mass job cuts.
“There is nothing I hate more, but it must be done,” Musk wrote in the memo to employees. He explained that Tesla’s rapid expansion to multiple factories worldwide has led to role duplication that needs to be trimmed.
Musk elaborated on X/Twitter that Tesla goes through a major reorganisation every 5 years or so as it gears up for its next growth cycle. This round is clearly designed to make Tesla leaner and meaner as it prepares to launch its next-generation vehicles.
The layoffs are already impacting high-level executives too. Senior VP Drew Baglino, who oversaw Tesla’s powertrain and energy divisions during his 18-year stint, is among those departing. Rohan Patel, Tesla’s head of policy, also seems to have been let go judging by his vanished company badge on X.
It’s the latest bit of turbulence for Tesla amid slowing sales growth projections and a missed delivery target last quarter. The company is clearly trying to cut costs and boost productivity heading into Q2 earnings on April 23.
The news comes amid rumours that Musk may announce plans to invest in a new Tesla factory in India during an upcoming meeting with PM Modi later this month.
You can read the full memo below:
“Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. 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 organisation and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.
I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.
For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.
Thanks,
Elon”
Source:indianexpress.com