The Tesla layoffs news has hit hard globally, putting into question whether anyone is safe in these trying times. The last few years have been difficult for employees across industries and the callous nature of the Tesla layoffs in 2024 has rubbed many the wrong way. Back in April, Tesla’s CEO made a sudden announcement that more than 10 percent of the workforce was going to lose their jobs after the Q1 deliveries fell for the first time in almost 4 years. Amidst declining sales and tough competition from the Chinese EV market, the company decided to cut costs on the back end instead of looking to resolve the many reasons behind declining sales, all of which have led us to this Tesla layoff update.
Image: Tesla
Tesla Layoffs News Leaves Employees and the Industry Stunned
It has not been a good year for Tesla and there have been many signs of internal struggles at the company despite the CEO’s dismissal of them. The automotive company’s deliveries in the first quarter fell 20 percent from the previous quarter and more than 8 percent from the same period last year, according to Business Insider. The company blamed the slump in sales on a variety of problems including supply chain issues and an arson attack at its Berlin factory. While these factors may well have contributed to the fall, others have seen a real decline in Tesla’s popularity, especially considering the growing number of affordable alternatives on the market.
The EV industry slowdown is a major villain in the Tesla layoffs in 2024, but it doesn’t sufficiently address the mismanagement of manpower that has been seen at the company. Time and again, the company has faced accusations of high injury rates and poor working conditions, repeatedly battling against the workers’ efforts to unionize. Tesla CEO Elon Musk has remained a staunch disbeliever in union initiatives, bringing with him a legacy of unsatisfied employees being cut from their jobs. The takeover of Twitter was noteworthy for many reasons but the reduction of the company staff by over 80 percent has to be one of the major takeaways.
Tracking the Tesla Layoffs in 2024
Elon Musk’s role in the Tesla layoffs is undeniable as many remain confused about the company’s strategy. The automotive company’s Supercharger network has been one of the more successful elements of its business, with its North American Charging Standard gaining popularity and seeing fast-paced adoption as the industry standard. Despite this, the Tesla layoffs news indicates that almost the entire team responsible for the management of EV charging is being eliminated.
“…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.”
—Section of Elon Musk’s memo to employees
A key source for the Tesla layoffs updates, The Information reported that Rebecca Tinucci, Tesla’s Senior Director of EV charging, and the majority of her 500-strong charging team were being let go from Tesla. Many assumed that the company was changing directions and scaling down its business in the area, but this was followed by news that Tesla was, in fact, going to spend more than $500 million on expanding its fast-charging network. Tesla’s charging network investments are considerable and it has benefited significantly from federal policies that aim to grow the EV charging network in the U.S., which makes the decision to eliminate the employees who made the success possible very unfortunate.
Electrek, a platform that has been very detailed in its reports of Tesla layoff news, also reported that employees of the company have been fired for miscellaneous reasons. One example of this is Musk’s decision to cut the entire ad team because their ads were “too generic.” The pursuit of quality is commendable but the casual decision to replace them is perhaps not. These aren’t the only departments with job cuts as the software and service teams have also been met with termination letters. With over 140,000 employees to choose from, there will be many more who are forced to make an exit from the company.
Elon Musk’s Tesla Layoffs Extend to Senior Employees
Along with regular employees, many senior executives have also left the company, both willingly and unwillingly. Apart from Tinucci, Daniel Ho, Head of Tesla’s new vehicles program, was also let go as part of the Tesla layoffs in May 2024, after spending 11 years at the company. Rohan Patel, VP of public policy and business development, and Drew Baglino, VP of Powertrain and Energy Engineering, also left the company, although their exit has been advertised as voluntary.
Rich Otto, Head of product launches, resigned from the company voluntarily after a seven-year tenure. In a now-unavailable post on LinkedIn that Electrek was able to preserve, he stated, “Great companies are made up of equal parts great people and great products, and the latter are only possible when its people are thriving. The recent layoffs that are rocking the company and its morale have thrown this harmony out of balance and it’s hard to see the long-game. It was time for a change.”
The Tesla layoffs news is unfortunate and it leaves many employees scrambling for a new opportunity in an already-crowded job market. According to Bloomberg, Elon Musk’s Tesla layoff plans were sufficiently motivated by a desire to lay off at least 20 percent of its workforce because its quarterly delivery fell by 20 percent. This does not reflect well on the company but this arbitrary strategy could be the direction it takes after the Tesla layoff updates cross the 10 percent threshold.
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