Less than two weeks after Tesla announced it the first drop in year-over-year delivery as of 2020, CEO Elon Musk sent an internal email to staff stating that the company would cut at least 10% of its global workforce.
Musk's memo, sent to close to midnight PST Sunday in California, explained that “there has been duplication of job roles and functions in certain areas” and that the layoffs will occur “to reduce costs and increase productivity.”
Tesla executives, including senior vice presidents Drew Bagliano and policy chair Rohan Patelalso announced on Monday that they were leaving the company. Patel said TechCrunch that he chose to leave due to “(b)overall changes” at Tesla.
Elon Musk, owner of Tesla and the X platform (formerly Twitter). Photo by Beata Zawrzel/NurPhoto via Getty Images
Tesla employees shared rumors of layoffs of up to 20%. Electrek Sunday.
Musk's email confirmed the percentage was “more than 10%” without saying specifically how many employees would be affected.
Tesla had 140,473 employees worldwide as of Dec. 31, it said 2023 Annual Reportwhich means at least 14,000 people will be affected.
Connected: Tesla sales, deliveries fall for first time since 2020
Bloomberg reported in February that Tesla asked managers if each of their employees' jobs were critical to the company, prompting fears of layoffs. Tesla also decided not to give merit-based stock bonuses last year.
Tesla was fired for the last time 27 employees in Buffalo, New York in February 2023.
Connected: 'Next Tesla' electric car startups hit hard: 'Investors want to see demand'
Layoffs follow The Tesla Report in early April, shipments fell 8.5% year over year due to factors such as factory closures. Demand lower than expected may also have played a role.
Earlier this monthMusk claimed that the Tesla Robotaxi, a new autonomous offering from Tesla, will be unveiled in August.
Tesla is set to release its financial results for the first quarter of 2024 April 23.
Connected: Elon Musk reveals when Tesla will launch its first robot
Some media, including Electrek, ReutersAND Business Insiderlooked at the memo.
Here is the full internal email about the layoffs at Tesla, obtained by Business Insider on Monday:
Over the years, we have grown rapidly with multiple scale factories around the globe. With this rapid growth there has been a duplication of job roles and 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 to reduce costs and increase productivity.
As part of this effort, we have undertaken a complete 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 has to 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 leaving Tesla for their hard work over the years. I am deeply grateful for your many contributions to our mission and we wish you success in your future endeavors. It's very hard to say goodbye.
For those who remain, I want to thank you in advance for the hard work ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for its next phase of growth, your determination will make a big difference in getting us there.
Thank you,
Elon