Tesla Initiates New Round of Layoffs Affecting Multiple Departments

News from May 7th reports that Tesla has initiated a new round of layoffs, with employees from several departments including software, services, and engineering having received their termination emails over the last weekend.

Previously, Tesla CEO Elon Musk informed employees via email that the company would be cutting over 10% of its global workforce in an effort to reduce costs and improve production efficiency. Publicly available documents from January reveal that Tesla employs over 140,000 people worldwide, meaning this round of layoffs could affect up to 14,000 individuals.

On April 24th, news broke on social media of recent graduates reporting their job offers from Tesla being rescinded. This sparked a flurry of discussions and attention online, with topics such as “Tesla’s rescinded job offers to graduates,” “HR from various companies rushing to recruit Tesla’s rejected graduates,” and “Responses from graduates with rescinded offers from Tesla” trending on search engines.

On April 29th, local time, Musk sent an internal memo announcing that Rebecca Tinucci, the head of Tesla’s Supercharger team, and Daniel Ho, head of new product development, along with their entire team of approximately 500 employees, would be departing the company.

Tesla’s founder and CEO, Elon Musk, has previously mentioned in internal communications that Tesla has experienced rapid growth over the years, opening multiple factories worldwide. However, as the company expanded, some departments saw overlapping roles and job functions. He pointed out that layoffs are a crucial measure for the company to address current market challenges and optimize its structure, aiming to enhance the company’s competitiveness and innovation capacity. Focusing on all aspects of the business becomes essential for the company’s next phase of growth and cost reduction.