Tesla to Cut Over 10% of Workforce

Earlier, Reuters reported that Tesla has begun a workforce reduction exceeding 10%. As of December 2023, Tesla’s total workforce was approximately 140,000, meaning that about 14,000 individuals may be affected. “As we prepare the company for its next phase of growth, it is critically important to scrutinize all aspects of the company to reduce costs and increase efficiency,” wrote an internal memo provided by a source. “As part of this effort, we have conducted a thorough review of the organization and made the difficult decision to reduce the global workforce by over 10%.”

Reportedly, some employees have already received notifications of layoffs, and concurrently, Drew Baglino, a senior vice president who has served for 18 years, announced his departure from Tesla on X. Meanwhile, deliveries of the Cybertruck are facing issues at this time. “We have just learned that your vehicle is experiencing unexpected delays in preparation. We need to cancel your delivery appointment for Sunday, and we will reach out to you again once the issue is resolved,” reads an email sent to consumers who have ordered the Cybertruck.

Drew Baglino's X

In the just-concluded first quarter of 2024, Tesla’s delivery volume fell far below market expectations, marking its worst quarterly performance since 2020. The company attributes the problem to factory adjustments. However, external analysis suggests that factors such as waning enthusiasm for electric vehicles in the North American market and the rise of domestic brands in the Chinese market have significantly impacted Tesla’s performance. Given this situation, workforce adjustments do not come as a surprise.

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