Tesla’s recent wave of layoffs has entered its fourth week, with employees from various departments reporting notices of termination, marking another blow to the electric car manufacturer’s workforce.
Reports from Electrek and Business Insider indicate that the latest round of layoffs has affected segments such as software development, services, and engineering within the company. Affected employees disclosed receiving layoff notifications over the weekend and into Monday.
While the exact number of impacted employees remains undisclosed, media sources noted at least seven individuals publicly sharing news of their layoffs on Sunday.
The ongoing layoffs commenced last month when Tesla initiated what was then reported to be a 10 percent reduction of its global workforce of approximately 140,000 employees. The initial layoffs included high-level executives such as Rebecca Tinucci, head of EV charging, along with her entire team, and Daniel Ho, head of the new vehicles program.
Tesla CEO Elon Musk emphasized the necessity for organizational restructuring every five years and stressed the need for rigorous cost-cutting measures in an internal email to employees. Musk indicated that individuals working under executives failing to meet stringent performance criteria would face termination.
Amid reports of declining quarterly vehicle deliveries prompting Musk’s desire for significant workforce reductions, Tesla confronts financial challenges with sales and profits down 55 percent year-over-year. Intensified competition, coupled with reduced global demand for electric vehicles (EVs), contributes to the company’s current predicament.
In a strategic shift, Musk has pivoted Tesla’s focus towards autonomous driving technology, envisioning the company as a leader in self-driving vehicles. This redirection underscores Musk’s plans to unveil a fully autonomous robotaxi later this year.
As Tesla streamlines its operations to prioritize autonomous driving software, robotaxis, and innovative projects like the humanoid robot Optimus, analysts speculate that certain departments may face budgetary constraints.
Last month, Tesla disclosed anticipations of incurring over $350 million in expenses related to the recent layoffs during the second quarter. Additionally, the company witnessed a series of executive departures, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.
