Tesla lays off 10% of its workforce, key executives depart [Update]

Tesla is reducing its workforce by over 10%, affecting approximately 14,000 employees globally. At the same time, at least one key executive has decided to leave the company, while others appear to have also moved on.

After rumours emerged over the weekend that Tesla was preparing to layoff up to 30% of its global workforce, CEO Elon Musk confirmed the news in a company wide email on Monday, which can be found at the bottom of this article, with the actual number being around 10%. According to Musk, he came to the “difficult decision” of payoffs after completing a thorough review of the company’s structure, citing the company’s rapid growth with multiple factories coming online in recent years and scaling production at others that led to duplication in roles and job functions.

Musk expressed his reluctance to make such a decision but said Tesla needs to stay lean and innovative as the company prepares for what he describes as “the next phase of growth.”

While the company is laying off a portion of its workforce, at least one key executive has chosen to leave the company, while others appear to have either made the same decision, or have been victim to the restructuring.

Drew Baglino, Tesla’s SVP of Powertrain and Energy, confirmed in a post on X that he has made the “difficult decision” to leave the company, saying he has no plans for the future other than to spend more time with his family.

Baglino is so far the only executive to confirm their departure, but it appears Rohan Patel, Vice President, Public Policy and Business Development is also no longer with Tesla, as his ‘T’ badge indicating he is an employee has been removed from X (formerly Twitter). Baglino’s ‘T’ badge has also been removed.

UPDATE 8:30am PT: Patel has now confirmed he has decided to leave Tesla. We have also removed reference to Ashok Elluswamy’s possible departure as his ‘T’ badge has now returned on X.

You can read Musk’s full email below, which Drive Tesla has been able to verify as authentic.

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

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