TESLA LAYOFF'S CONTINUE FOR THE THIRD TIME IN A MONTH
- Tesla continues to cut jobs, this time in software, service, and engineering.
- This follows the dismissal of two executives and their entire teams.
- It's unclear how these layoffs will impact new product rollouts and the future of the Tesla charging network.
Tesla is embarking on another round of layoffs impacting jobs in the software, service, and engineering departments. First reported by Electrek, this new wave of layoffs follows two previous waves that saw more than 10% of the company's workforce let go in the last month as the company begins its "next phase of growth" past the Cybertruck according to a letter sent out by Elon Musk.
2024 Tesla Cybertruck
This new round of layoffs had employees receiving a random "employment status" email over the week. When the first round of layoffs was announced, Elon Musk stated the company was cutting 10% of the workforce, which would amount to about 14,000 employees worldwide.
Third Wave Of Layoffs In Three Weeks
Reports at the time indicated this was just a public-facing story, as he was actually planning on dropping 20% of the workforce. He then dismissed two high-profile executives and their entire divisions.
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Rebecca Tinucci, Senior Director of EV Charging at Tesla and Supercharger Network, and Daniel Ho Director of New Vehicles were the two executives released. Musk was reportedly frustrated at the slow rate at which they were cutting their divisions and wanted to make an example of them and their teams to show he was "absolutely hardcore about headcount and cost reduction."
Unclear Goals
Restructuring was the stated goal of the layoffs, with Musk saying the company had grown too large and needed to streamline headcount and processes. Given the disappointing first-quarter results, it's also possible Musk feels he needs to cut spending.
Elon Musk Says Affordable Tesla EVs Are Coming Sooner Than Planned, But Potentially On Old Platforms
Tesla's Q1 call brought promises of cheaper EVs, but probably not with the next-gen "unboxed" assembly line manufacturing process of the Robo Car.It's unclear what this means for Tesla's future. Combined with reports that the company is canceling future innovative projects and the announcement that new products will be released on the old Model 3 and Y platform, it's a bit of a puzzle.
Source: Electrek