"Tesla Launches Another Round Of Layoffs; Tesla Workers Across Several Departments, Including Software, Service, And Engineering, Have Received Email Over The Weekend" - Electrek

Author: Benzinga Newsdesk | May 06, 2024 11:28am

https://electrek.co/2024/05/06/tesla-tsla-launches-another-round-layoffs/#:~:text=Tesla%20(TSLA)%20launched%20another%20round,about%2010%25%20of%20its%20workforce.

 

Tesla (TSLA) launched another round of layoffs this weekend, with employees in wide-ranging roles getting their pink slip amid broader layoffs over the last 3 weeks.

Three weeks ago, Tesla started a significant wave of layoffs. The automaker announced it was laying off about 10% of its workforce.

However, we reported prior to the announcement that the layoffs could be closer to 20% of the workforce once everything is said and done.

Sure enough, Tesla had another significant wave of layoffs last week.

Now, we hear of yet another round of layoffs at Tesla.

Several sources familiar with the matter told Electrek that workers across several departments, including software, service, and engineering, have received the dreaded "employment level" email between Friday and Sunday.

The layoffs were expected after CEO Elon Musk made an example of Rebecca Tinucci, Tesla's former head of charging, and her entire team by firing everyone last week. After the move, he emailed other executives and told them that they would also be let go if they don't let go higher percentages of their teams.

Musk and Tesla have given several reasons for the layoffs. Musk first told employees that it was due to Tesla's fast headcount growth over the last few years, resulting in hiring inefficiencies and role duplication.

However, he also told investors and employees more recently that it was about "restructuring for the next phase of growth".

The layoffs also come after Tesla had one of its worst financial performances in a while due to lower-than-expected vehicle deliveries.

Posted In: TSLA