As the company moves into its fourth week of layoffs, Tesla is still restructuring. Staff members are posting updates on their departures on social networks like LinkedIn.
Reports from reputable sources such as Electrek and Business Insider shed light on the recent wave of layoffs at Tesla, reverberating across various company segments. Notices of termination have been circulating over the weekend and into Monday, contributing to uncertainty regarding the overall scope of affected employees. While some reports suggest that at least seven individuals have publicly disclosed their layoffs on Sunday, the full extent of the downsizing remains unclear.
This series of layoffs commenced last month, with Tesla initiating cuts affecting approximately 10 per cent of its global workforce, which stands at around 140,000 employees. Among those staff members were prominent executives, including the head of EV charging, Rebecca Tinucci, her entire team, and the head of the new vehicles program, Daniel Ho.
Elon Musk, Tesla’s CEO, emphasised the need for regular restructuring, arguing that it is necessary to restructure every five years to preserve the business’s adaptability and productivity. Musk stressed the need for quick reduction in internal communications and warned that leaders’ staff who didn’t live up to the company’s expectations risked losing their jobs.
According to trusted sources, Musk has privately stated that he would like to cut at least 20 percent of the workforce. A notable drop in quarterly vehicle deliveries prompted the layoffs. Tesla is facing financial difficulties due to declining sales and a 55 percent drop in profits from the previous year. The company’s financial situation is made worse by increased competition in the US and Chinese markets and a global decline in demand for electric vehicles.
Musk is relentless in his ambition to lead Tesla towards future success despite these significant challenges. In the face of the unpredictable automotive market, the company’s renewed focus on autonomous car technologies signals a strategic pivot.
Tesla intends to use creativity and technological know-how to weather the current financial storm and emerge stronger from it. The company hopes to launch a completely autonomous robotaxi later this year.