Tesla lays off ‘more than 10 percent’ of its workforce, loses top executives

Baku, April 16, AZERTAC
A few weeks after reporting its first year-over-year decline in vehicle deliveries since 2020, Tesla is now planning to lay off over ten percent of its global workforce, according to an internal company-wide email seen by Electrek, according to The Verge. That works out to at least 14,000 of the 140,473 employees that Tesla reported in its latest annual earnings. It’s not clear which teams at Tesla will be impacted.
“There is nothing I hate more, but it must be done,” said CEO Elon Musk in the email published by Electrek. In a later post on X, Musk said that “about every 5 years, we need to reorganize and streamline the company for the next phase of growth.”
As part of the layoffs, Tesla senior vice president Drew Bagliano is also leaving, Bloomberg reports. (Baglino later confirmed the departure on X.) He has been at the company for over 18 years in several roles and was most recently in charge of Tesla’s energy and powertrain division. Electrek also noticed that the Tesla badge has vanished from the X account for the company’s head of policy, Rohan Patel.
Today’s layoff announcement is the latest in a string of bad news for Tesla. The company reported a miss in delivery estimates ahead of its quarterly earnings on April 23rd, alongside a predicted slowdown in sales growth back in January as it prepares for the launch of its next-generation vehicles.
Tesla has also reportedly abandoned its plans to produce an affordable Model 2 that would cost around $25,000 as it shifts to instead focus on a new robotaxi. This comes as the company faces mounting pressure from the one-two punch of waning demand for EVs and more affordable EVs being released by Chinese manufacturers. Last year, Tesla lost the title of world’s top maker of electric vehicles to China’s BYD, which produced 3.02 million EVs compared to Tesla’s 1.81 million.

World 2024-04-16 15:44:00