Elon Musk sent an all-employee email today, stating that Tesla will lay off 10% of its employees worldwide.
Blogger “Zhu Yulong-YL” released the content of this all-member letter, with the following gist:
We have grown rapidly over the years and have multiple factories around the world. As the company has grown rapidly, roles and job functions have overlapped in certain areas. As we prepare for the next phase of our company’s growth, it is extremely important to look at all aspects of our company to reduce costs and increase efficiency.
As part of this effort, we conducted a thorough review of the organization and made the difficult decision to reduce our workforce by more than 10% globally. There is nothing I hate more than this, but I have to do it. This will enable us to strive for excellence and innovation, and prepare for the next phase of our growth cycle.
I want to thank everyone who is leaving Tesla for all their hard work over the years. I am deeply grateful for your many contributions to our mission and wish you all the best in your future endeavors. It is difficult to say goodbye at this time.
To those of you who are staying, I want to thank you in advance because there is still a lot of work ahead. We are developing the most revolutionary technologies in automotive, energy and artificial intelligence. As we prepare for the next phase of our company’s growth, your determination will play a huge role in achieving our goals.
Thanks,
Elon
According to Phoenix Technology, Tesla will cut about 10% of its jobs in 2022. Elon Musk issued an email to company executives suspending all global hiring, saying that based on the pessimistic economic outlook, Tesla needs to cut about 10% of its jobs and increase the number of hourly workers. Elon Musk further revealed in a subsequent email that the layoffs would not apply to any employees actually producing cars, battery packs or installing solar products.
In February, Tesla executives were reportedly asked to identify the “most important roles” on their teams, and the company postponed performance reviews for some employees. According to three sources, the work was later “rescheduled.” Tesla’s hiring pace has slowed in recent years: Tesla added 29,000 new employees in 2022, which has dropped to 12,000 in 2023.
According to a report, multiple foreign media quoted Tesla employees as saying that the company will conduct a round of large-scale layoffs on Sunday, local time, involving up to 20% of employees. Seven Tesla engineers from Austin, Fremont and other places even said that news has spread from Tesla’s office that “layoffs are about to begin.”
Tesla released production and sales data for the first quarter of 2024 earlier this month: a total of 386,810 vehicles were delivered, a plunge of 8.5% year-on-year. Analysts on average expected Tesla to deliver about 457,000 vehicles, with the forecast range ranging from 414,000 to 511,000 vehicles. As a result, actual sales fell short of the minimum standard. This data brought Tesla back to the level of the second half of 2022. level.
