Tesla cuts workforce by over 10%, loses key executives

After recording a decrease in vehicle deliveries from the previous year, Tesla is now planning significant layoffs, with over ten percent of its workforce affected, according to an internal email obtained by Electrek. This amounts to at least 14,000 employees out of the 140,473 reported in the latest earnings.

CEO Elon Musk, acknowledging the necessity of the action, expressed his dislike for it in the email shared by Electrek. Musk further emphasized the need for periodic reorganization to adapt to new growth phases in a subsequent post on X.

Tesla’s senior vice president Drew Bagliano is also departing as part of the layoffs, as reported by Bloomberg. With over 18 years at Tesla in various roles, Bagliano, who oversaw the energy and powertrain division, confirmed his departure later on X.

Electrek observed the absence of the Tesla badge from Rohan Patel’s X account, adding to a series of setbacks for Tesla. The company’s recent layoff announcement compounds its troubles, with missed delivery estimates and a slowdown in sales growth preceding its quarterly earnings.

Tesla’s plans for an affordable Model 2 priced at $25,000 have reportedly been shelved in favor of focusing on a new robotaxi initiative. This strategic shift coincides with the company’s preparation for the launch of its next-generation vehicles.

Facing declining demand and competition from Chinese manufacturers, Tesla relinquished its position as the world’s leading electric vehicle maker to China’s BYD last year. BYD produced 3.02 million EVs compared to Tesla’s 1.81 million, highlighting the increasing pressure on Tesla in the global EV market.

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