Written by Cláudio Afonso | [email protected] | LinkedIn | X
Tesla, the world’s largest EV maker, issued an email on Monday to all employees announcing a >10% reduction in its global staff representing around more than 14,000 employees. Tesla’s CEO Elon Musk enhanced that “it is extremely important to look at every aspect of the company for cost reductions and increasing productivity”.
Here’s the letter sent by Tesla CEO Elon Musk:
“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”
This marks Tesla’s fifth major layoff since 2017, when it reduced its headcount by 2%. Since then, the company has reduced its teams in 2018, 2019 and 2022 by 9 percent, 7 percent and 3 percent respectively.
Despite this reduction, Tesla’s workforce has seen substantial growth, expanding from 38,000 employees in early 2018 to 140,000 in early 2024.
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The company has announced on Friday a substantial price cut for its Full Self-Driving (FSD) Supervised subscriptions in the U.S. and also introduced the subscription model in Canada at CA$99 per month.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
