Tesla Announces Layoffs of Over 10% of Global Workforce Amid Business Restructuring

Tesla announces layoffs of over 10% of global workforce amidst business restructuring. Stay informed on company changes and industry implications

Tesla, the world's largest auto-maker by market value, is set to lay off more than 10% of its global electric vehicle workforce, according to a memo from billionaire owner Elon Musk.

 

The decision, detailed in a memo first reported by news website Electrek, comes as part of a broader effort to streamline operations and prepare for the next growth phase cycle.

 

In the memo, Musk expressed his reluctance towards the layoffs, stating that there was nothing he hated more but emphasized that it was a necessary step to ensure the company's agility and innovation moving forward.

 

 The layoffs will affect thousands of employees worldwide, with a Tesla employee confirming to the BBC that affected staff had been locked out of their emails.

 

Additionally, key executives, including Andrew "Drew" Baglino, senior vice president of powertrain and energy engineering, and Rohan Patel, head of public policy and business development, have announced their departures from the company. Baglino expressed his gratitude to Musk for the opportunity to lead significant initiatives at Tesla, while Patel highlighted the company's resilient culture as a defining aspect of his tenure.

 

The news of layoffs and executive departures comes amidst challenges for Tesla, including a decline in vehicle deliveries in the first quarter, reduced production at the Gigafactory in Shanghai, and adjustments to production schedules for the Cybertruck in Austin. Slowing demand for electric vehicles and delays in model refreshes have also contributed to the company's recent struggles.

 

Despite these challenges, Musk remains committed to Tesla's long-term goals, including plans to produce affordable electric vehicles for the masses. However, Tesla shares experienced a slight decline in premarket trading following the announcement, reflecting investor concerns about the company's current trajectory.

 

As Tesla prepares to report its quarterly earnings, the layoffs and executive departures underscore the need for strategic adjustments in response to changing market conditions and internal challenges.