Elon Musk Cut 14,000 Tesla Staff After Weak Sale and Revenue Numbers


Elon Musk
Elon Musk cut 14,000 jobs at Tesla. FilmMagic

Elon Musk announced job cuts at Tesla (TSLA) today (Apr. 15), affecting over 10 percent of the electric vehicle maker’s staff (around 14,000 employees). The company reported over 140,000 employees in 2023. In a company memo, Musk noted over-hiring as one reason for the layoff.

“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,” Musk said in the memo. Tesla has been missing the mark lately, which is no surprise, given that the EV industry is scrambling. Earlier this month, the company’s quarterly sales fell for the first time since the pandemic began, and it sold 20 percent fewer cars in the first three months of 2024 than in the previous quarter. Tesla’s financial reports failed to meet expectations and ranked among the worst-performing stocks among S&P 500 companies.  

Musk also appears to have changed his tune about advertising. Instagram and Facebook users noticed ads for Tesla pop up on their apps despite the CEO commenting that Facebook was “lame.” He’s also had a rough relationship with advertisers on his platform X, which he bought in 2022, but has recently used the platform to promote Tesla. 

Two Tesla executives announced they would leave the company following the layoff news. Senior Vice President of Powertrain and Energy Engineering Drew Baglino and Policy and Business Development Vice President Rohan Patel made the announcements through posts on X. Baglino had been at Tesla for 18 years, starting as an electrical engineer in 2006, and Patel had been with the company for eight years.

https://x.com/baglino/status/1779872449628426739 

https://twitter.com/rohanspatel/status/1779887553367126525 

Read Musk’s memo to Tesla employees 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 organization 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

Elon Musk Cut 10 Percent of Jobs at Tesla. Read His Memo to Employees





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