Tesla (TSLA) launched another round of layoffs this weekend, with employees in wide-ranging roles getting their pink slip amid broader layoffs over the last 3 weeks.
Three weeks ago, Tesla started a significant wave of layoffs. The automaker announced it was laying off about 10% of its workforce.
However, we reported prior to the announcement that the layoffs could be closer to 20% of the workforce once everything is said and done.
Sure enough, Tesla had another significant wave of layoffs last week.
Now, we hear of yet another round of layoffs at Tesla.
Several sources familiar with the matter told Electrek that workers across several departments, including software, service, and engineering, have received the dreaded “employment status” email between Friday and Sunday.
The layoffs were expected after CEO Elon Musk made an example of Rebecca Tinucci, Tesla’s former head of charging, and her entire team by firing everyone last week. After the move, he emailed other executives and told them that they would also be let go if they don’t let go higher percentages of their teams.
Musk and Tesla have given several reasons for the layoffs. Musk first told employees that it was due to Tesla’s fast headcount growth over the last few years, resulting in hiring inefficiencies and role duplication.
However, he also told investors and employees more recently that it was about “restructuring for the next phase of growth”.
The layoffs also come after Tesla had one of its worst financial performances in a while due to lower-than-expected vehicle deliveries.
Electrek’s Take
Top comment by Steve Bee
I love my Model Y and the whole EV driving experience. That said, there is a storage lot in my town outside of Boston that I've kept an eye on for the past 2 or 3 years. Up to a few months ago, if it had 40 cars in it, that was a lot. Now, the inventory has taken over most of the truck depot site that Tesla has been renting. I'd say it's about 3 acres of inventory or more now and most of this has piled up in the past 4 weeks or so.
Last night I saw Kyle's 10 Percent Challenge video for the refreshed Model 3 and the thing can't even do 200KW at a Supercharger while the competition is improving charging dramatically.
Tesla's helmsman/men have been absent and I'm not sure how quickly they'll get things back on course.
Edited to add: Tesla still has $27B in cash, however, so while it's always prudent to watch spending, why there's an urgent panic is beyond me.
I have heard from many service people getting let go since Friday, and several programmers and engineers yesterday.
It does look like another round of layoffs, the third in as many weeks.
I hope this ends soon for the sake of Tesla employees because it is a super stressful situation right now. Employees are always looking at their personal email for the dreaded email.
Several sources told me that some departments are so gutted that Tesla will likely soon realize that it will need to rehire many workers, which is something the automaker had to do after previous layoff rounds.
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