Tesla Cuts 10% of Global Workforce

[BannedByTMC]

In fact Elon's actual quote was "more than 10%"

reduce our headcount by more than 10% globally.

 

[CybertruckCovers]

The electric Viking says he’ll abandon his channel if this is true. ?

I think Sam Evans meant he would abandon his channel if it was found out that the layoffs were actually due to lack of demand for the Cybertruck as hinted by Electrek's article. He felt the article was misleading.

 

[CyberGus]

He felt the article was misleading.

An influencer, misled by the media??

We've come full circle

 

[GuyV]

They should offer every one of those people jobs in customer service. That department needs a serious influx

Not an influx of underperformers.

 

[cvalue13]

Hopefully no jobs were cut from CT assembly…??

They were

On second reading, I suppose the accuracy of my comment could turn on what Sleg has in mind exactly by ‘CT assembly’ …

Fair at least to say ‘folks involved in getting CTs into customer’s hands’ were affected

 

[CYBRSMTH]

I don't like this if true:

Drew Baglino, Senior VP of Powertrain and Energy, and Rohan Patel, VP of Public Policy have both reportedly resigned.

It’s true. Not great news. I’m sure they wouldn’t have been cut. I wonder why they weren’t rotated to SpaceX or X.ai, like they’ve been trying to do with the engineers when they get burnt out?

 

[ModelXer]

May cause a dip but they've done this a few times in the past, Elon thinks regular staffing cuts are needed to avoid bloat, he's probably correct.

Elon:

Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity.

As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.

I would like to thank everyone who is departing Tesla for their hard work over the years. I'm deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.

Thanks,

Elon

No wonder he's an anti-union activist. He'd have to protect the workers from indiscriminate layoffs and better plan the workforce needs.

 

[RayzorBEV]

May cause a dip but they've done this a few times in the past, Elon thinks regular staffing cuts are needed to avoid bloat, he's probably correct.

Elon:

Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity.

As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.

I would like to thank everyone who is departing Tesla for their hard work over the years. I'm deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.

Thanks,

Elon

Only companies that have enough forward vision, the ability to adjust their businesses timely and appropriately while remain flexible with their short and long term plans will survive in todays' tumultuous social and economic environment. I see Elon and Tesla possesses all the above qualities. Godspeed to Elon and the entire Tesla team ?

 

[Jhodgesatmb]

While Tesla does employee evaluations and culling every year I was surprised to see these 2 guys leave. Hopefully Tesla has good replacements and also wish these guys the best in their new endeavors.

Drew's announcement I read after seeing the post in this thread. I have not seen a post from Patel. In none of these cases do I see there being any causal connection. Drew has had a seminal impact on Tesla, just as Franz, Lars, and Andrej and Zach before them him. Tesla power train and energy systems appear to be in good shape so this is a good time for Drew to step away, and how many people can say that they have been with the same company for 18 years? The guy must be rolling in money, so I wish him the most happiness going forward, and thank you Drew. Thank you very, very much!

 

[Jhodgesatmb]

They were

and while 10% may be the global averaged across the company, note that it does not mean that at any given site/function there was a 10% ceiling

some sites/functions will experience more than 10%, others less

but people involved with CT in ATX were among them. sounding like quite a few.

Oh my, @cvalue13 comes out of his mysterious absence

 

[android04]

Drew's announcement I read after seeing the post in this thread. I have not seen a post from Patel. In none of these cases do I see there being any causal connection. Drew has had a seminal impact on Tesla, just as Franz, Lars, and Andrej and Zach before them him. Tesla power train and energy systems appear to be in good shape so this is a good time for Drew to step away, and how many people can say that they have been with the same company for 18 years? The guy must be rolling in money, so I wish him the most happiness going forward, and thank you Drew. Thank you very, very much!

Rohan Patel's post is pinned on his X profile page (see the last 2 paragraphs of his post).

 

[Mini2nut]

Rumor is that Mr. Musk has defunded the Model 2 (NV9) project. He is supposedly funneling all resources into Robotaxi w/FSD and a humungous data center under construction at Austin to support it.

This may have been the final straw for Drew B’s departure announcement today. I am surprised that he lasted 18 years reporting to Elon. Musk probably gave a 90 day marching order to leadership and have everything ready for the August 8th Robotaxi reveal. The leadership expectations must be off the hook.

Next week’s earnings call should be interesting.

 

[EvilNuff]

Rumor is that Mr. Musk has defunded the Model 2 (NV9) project. He is supposedly funneling all resources into Robotaxi w/FSD and a humungous data center under construction at Austin to support it.

This may have been the final straw for Drew B’s departure announcement today. I am surprised that he lasted 18 years reporting to Elon. Musk probably gave a 90 day marching order to leadership and have everything ready for the August 8th Robotaxi reveal.

Next week’s earnings call should be interesting.

If true then I fully expect TSLA to drop like a rock once people realize that robotaxi will never be a reality with their current tech stack.

 

[Bkent100]

I understand this is a difficult message for Tesla owners to hear. Job cuts are always painful, both for those who must depart and for those who remain. However, Elon's message demonstrates necessary pragmatism as Tesla prepares for its next phase of growth.

While job losses are never easy, Elon is striking a balance - acknowledging the pain, thanking those impacted, but also being clear-eyed about business realities. As fellow Cybertruck owners, we can appreciate the need for Tesla to make tough decisions to position itself for continued innovation and growth.

The Cybertruck dream lives on, and I'm confident Tesla will emerge stronger as it pushes towards that next phase. Together, we'll keep the faith and look forward to the day we're all cruising in our futuristic electric trucks.

You must work for Tesla executive management… lol

 

[Bkent100]

I’ve worked in corporate America for 30 years and when you take this kind of cut, it’s generally a sign that you can no longer depend on the revenue generating side of the equation and therefore need savings on the expense side of the equation. I’d imagine the days of exponential growth are over and expense tightening will be a regular occurrence!