Tesla To Lay Off 10% Of Its Workforce

Elon Musk 

Following extremely low quarterly sales, Tesla will lay off 10% of its personnel

Tesla, Elon Musk's company, intends to reduce roughly 10% of its staff in an effort to save expenses.

This comes after the business revealed disappointing first-quarter sales.

With around 14,000 of the 140,473 US workers still working by the US corporation at the end of 2023 potentially facing layoffs, Musk outlined the plans in a note to staff members.

According to the email, it is critical that Tesla examine every facet of the business for ways to cut costs and boost efficiency as it gets ready for its next stage of expansion.

Also two prominent Tesla execs declared their departure from the business on X on Monday, April 15.

“I loved tackling nearly every problem we solved as a team and feel gratified to have contributed to the mission of accelerating the transition to sustainable energy,” he wrote.

After serving the company for eighteen years, senior vice president of powertrain and energy engineering Andrew Baglino announced his decision to resign.

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Senior worldwide director of business development and public policy Rohan Patel also announced his departure from Tesla on X, citing eight years of service.

Chief technology officer and holder of multiple senior engineering positions at the organization, Baglino said that leaving was not an easy decision.

In response, Musk thanked Baglino. “Few have contributed as much as you,” he stated.

Hours after the news of the layoffs and departures leaked, Tesla's shares dropped 4.8% on Monday afternoon, April 15. With the slowdown in sales of electric vehicles, Tesla Inc.'s stock has lost over one-third of its value in 2024.

Tesla's sales dropped precipitously in the most recent quarter as global competition grew, the rise of electric vehicle sales stalled, and price reductions were unable to attract additional customers.

The business reports that during the first three months of 2023, it supplied 386,810 cars, which is about 9% fewer than the 423,000 it sold during the same period in 2023.