Tesla Lays Off More Employees In Fourth Week Of Mass Layoffs

Tesla’s ongoing round of layoffs has extended into its fourth consecutive week, with employees across various departments receiving termination notices, further impacting the electric car manufacturer’s workforce.

Recent reports from Electrek and Business Insider reveal that the latest layoffs have affected departments such as software development, services, and engineering within Tesla. Affected employees disclosed receiving layoff notifications over the weekend and into Monday.

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While the precise number of impacted employees remains undisclosed, media sources have highlighted at least seven individuals publicly sharing news of their layoffs on Sunday.

This ongoing wave of layoffs began last month when Tesla initiated what was initially reported to be a 10 percent reduction of its global workforce, which comprises approximately 140,000 employees. Initial layoffs included high-level executives like Rebecca Tinucci, head of EV charging, and her entire team, along with Daniel Ho, head of the new vehicles program.

CEO Elon Musk emphasized the need for organizational restructuring every five years and emphasized rigorous cost-cutting measures in an internal email to employees. Musk indicated that individuals working under executives failing to meet stringent performance criteria would face termination.

Facing financial challenges amidst declining quarterly vehicle deliveries, Tesla confronts reduced global demand for electric vehicles (EVs) and intensified competition.

In a strategic shift, Musk has redirected Tesla’s focus towards autonomous driving technology, envisioning the company as a leader in self-driving vehicles. This move underscores Musk’s plans to unveil a fully autonomous robotaxi later this year.

As Tesla prioritizes autonomous driving software, robotaxis, and innovative projects like the humanoid robot Optimus, analysts speculate about potential budgetary constraints in certain departments.

Tesla disclosed expectations of incurring over $350 million in expenses related to recent layoffs during the second quarter. Additionally, the company witnessed a series of executive departures, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.