Tesla Layoffs Trim Workforce By 14%: Report

Tesla has reduced its workforce by approximately 14%, bringing the company’s global headcount to just over 121,000 employees, including temporary workers, down from the 140,473 employees reported at the end of 2023.

The new figures are from internal data obtained by CNBC. The outlet says the 121,000 figure was tallied by counting the number of recipients on the “everybody” email distribution list at Tesla, as of June 17, 2024.

While it is not entirely accurate or a publicly reported figure by Tesla, it does give us a glimpse on the impact of Elon Musk’s decision in April, where he announced that the company would be cutting over 10% of its global workforce.

In a company-wide email in April, Musk elaborated on the need of the reorganization, framing it as a required step for Tesla’s next phase of growth. “We’ve made some corrections along the way, but it is time to reorganize the company for the next phase of growth,” Musk said during the first-quarter earnings call.

The layoffs have not been without their challenges and unintended consequences, with several executives deciding to leave the company. Another notable instance involved the dismantling of Tesla’s Supercharging team, which included over 500 hundred employees, and its leader, Rebecca Tinucci.

Tesla has since rehired some of these employees.

Despite the workforce reduction, Tesla’s hiring efforts have not entirely stalled, although there was a brief and temporary hiring freeze. According to Tesla’s Careers page, the company has resumed hiring for key roles in both Canada and the US across various departments, including vehicle service, AI & robotics, manufacturing, supply chain, operations, engineering, and information technology.

The company has also started a new stock-based compensation plan for high performing employees.

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