Elon Musk delivers a speech at Tesla’s annual shareholder meeting in Austin, Texas on June 13, 2024.
Source: Tesla Inc.
Tesla’s Deep layoffs in 2023 have reduced its global workforce to just over 121,000, including temporary workers, internal records show, suggesting the automaker has cut more than 14% of its workforce so far this year.
The latest data does not come from precise salary data, but from the number of people on Tesla’s “Everyone” email distribution list as of June 17 (statistics seen by CNBC).
Tesla CEO Musk sent an email to “everyone” that day. He told employees that “over the next few weeks, Tesla will conduct a comprehensive review to provide stock options to employees who perform well.” He added that the option grants will also be awarded to “anyone who has made outstanding contributions to the company.” people”. Tesla plans to reintroduce option awards after previously suspending performance-based equity awards, first reported Reuters.
Tesla’s layoff announcement came in April, when Musk sent out a company-wide email telling employees that the automaker would be cutting more than 10% of its workforce. Layoffs were already underway at the time.
Burundi report Musk’s goal is to cut 20% of employees. Musk said the number could be larger. During the company’s first-quarter earnings call later in April, he said Tesla had reached inefficient levels of 25% to 30% after a “long boom” that began in 2019.
“We made some corrections along the way,” Musk said by phone. “But now is the time to restructure the company for its next phase of growth.”
in a Archive Tesla said that as of the fourth quarter, its global workforce stood at 140,473 as of the end of December, with the number representing salaried and hourly employees. The “Everyone” email list includes temporary workers. Tesla’s total employee count is approximately 121,000, showing that Tesla’s overall headcount has decreased by at least 14% since the end of 2023.
Tesla did not immediately respond to a request for comment.
In at least one instance, Musk’s layoffs went too far. Tesla laid off its Supercharger team of hundreds of employees, including its leader Rebecca Tinucci. The company later rehired some of those people, according to posts on LinkedIn
The broader layoffs coincide with Tesla’s sales slump as the company grapples with its aging electric vehicle lineup, rising competition in China and a deteriorating brand. recent surveys Part of the reason is Musk’s “antics” and “political rants.” Tesla’s annual revenue fell 9% in the first quarter, its largest decline since 2012.
The entire automobile industry, after two years of rapid expansion, has seen growth in electric vehicle sales slow down this year. The decline has been particularly severe for Tesla, whose Model Y was the world’s best-selling car in 2023.
A Tesla employee who requested anonymity to discuss sensitive internal matters told CNBC that some factory workers are concerned that more layoffs could occur in July based on second-quarter results.
Musk promised investors that the company will soon release a new “master plan,” which will be his fourth. Tesla will unveil its “dedicated robot taxi” on August 8 the design of.
Tesla shares were little changed on Friday at $181.71. The stock is down 27% this year, while the Nasdaq is up 18%.
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