Tesla’s recent round of layoffs has extended into its fourth week, with more employees sharing on platforms like LinkedIn that they’ve received notices of termination.
Reports from Electrek and Business Insider suggest that the layoffs are impacting various parts of the company, including software, services, and engineering. Employees reported receiving layoff notices over the weekend and into Monday.
The exact number of affected employees remains unclear. Business Insider noted that at least seven employees posted about their layoffs on Sunday.
This wave of layoffs began last month when Tesla initiated cuts affecting what was initially reported to be 10 percent of its global workforce of 140,000 employees. Among those affected were Rebecca Tinucci, Tesla’s head of EV charging, along with her entire 500-person team, as well as Daniel Ho, head of the new vehicles program.
In communications with employees, Tesla CEO Elon Musk emphasized the need for periodic reorganization, stating that the company must be “absolutely hard core” about the cuts. Musk indicated that staff working under executives who did not meet certain performance criteria would face termination.
According to Bloomberg, Musk expressed a desire to cut at least 20 percent of the company’s workforce following a decline in quarterly vehicle deliveries.
Tesla is navigating challenging financial circumstances, marked by declining sales and a 55 percent year-over-year drop in profits. The company faces intensified competition in both the US and China, coupled with weakening global demand for EVs.
Musk has been shifting focus away from Tesla’s vehicle business, aiming to position the company as a leader in autonomous vehicles. He has teased the unveiling of a fully autonomous robotaxi later this year as part of this strategic pivot.
