Tesla has made the decision to lay off 10% of its workforce, or nearly 14,000 of its 140,473 employees. With this reorganization, the manufacturer wishes “ prepare for your next phase of growth », Said Elon Musk in an internal memo.
There are signs that are unmistakable. For several months, numerous initiatives have signaled that a reduction in the workforce was being prepared in the company. Tesla has tasked its various executives with identifying critical team members, while suspending certain stock rewards.
Likewise, the annual evaluations of several employees were canceled, while production at the Shanghai Gigafactory was reduced.
Accumulation of difficulties
The situation at the California giant has become complicated in recent months, after constant growth since the pandemic. Its vehicle sales fell for the first time in almost 4 years during the first quarter of 2024. In addition to inflation and Chinese competition, the company also had to deal with a sabotage attempt at its German factory , which put production on hold.
“ Over the years, we have grown rapidly, with multiple factories located around the world. This rapid growth has led to duplication of roles and functions in some areas », Explains Elon Musk to his employees.
Some licensees already no longer have access to internal systems, while two renowned executives, Drew Baglino and Rohan Patel, have had their badges removed. affiliated with Tesla » on X.com, formerly Twitter. “ There’s nothing I hate more than that, but it has to be done. This will allow us to lean, innovate and be hungry for the next cycle of the growth phase », assures for his part the CEO
Internal program changes
According to American media, Tesla recently abandoned its $25,000 affordable electric car project. It will instead focus on the design of an autonomous taxi that Elon Musk will present at the beginning of August. Last year, Tesla lost the title of the world’s leading electric vehicle manufacturer to China’s BYD, which produced 3.02 million cars, compared to Tesla’s 1.81 million.
“ We develop some of the most revolutionary technologies in automotive, energy and artificial intelligence », Promises Musk to his staff.
Source : The Verge
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