Image Credit: Tesla
Tesla is laying off thousands of workers as it tries to simultaneously cut costs and increase productivity, CEO Elon Musk said in an internal email to employees. Electr And Bloomberg News reported. Drew Baglino, one of the company's top executives, has also left the company. Bloomberg.
The electric automaker is cutting “more than 10%” of its global workforce, Musk said in an email. Tesla completed 2023 With 140,000 employeesThat means the cuts could affect more than 14,000 people.
The layoffs come two weeks after Tesla reported a three-year drop in sales in its first year, amid a widespread cooling in demand for EVs. The company has warned investors that sales growth in 2024 will be “significantly lower” than its stated target of 50% growth each year. It's between product cycles for the first time in years, with the expensive Cybertruck only recently going into production and the popular Model Y entering its fourth year without significant updates.
“As we prepare the company for our next phase of growth, it is critical that we look at every aspect of the company to reduce costs and increase productivity,” Musk said in an email. Tesla's growth led to “duplication of roles and job functions in certain areas.”
“As part of this effort, we've fully reviewed the company and made the difficult decision to reduce our workforce by more than 10% globally. I don't hate it, but it has to be done. It will help us stay lean, innovative and hungry for the next growth cycle,” Musk said. wrote
Paclino is the second time a top executive has left the company in the past year, as Tesla CFO Zachary Kirkhorn stepped down in August 2023. Baglino oversaw engineering for the company's powertrain and battery technologies. He also became one of the most responsive executives on Musk's social media platform, X.
Tesla plans to ship a record 1.8 million EVs by 2023. But the company slashed prices on its most popular models for much of the year in an effort to offset the impact of higher interest rates and increased global competition. The company is said to be planning to build a low-cost EV — or at least, a late one — that will retail from around $25,000, opting instead to use a basic platform developed to power the robotaxi that Musk is said to debut. On August 8.
This story and headline have been updated to include news of Drew Baglino's departure.
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