Recent internal records suggest that Tesla, Elon Musk's EV company has reduced its global workforce by more than 14 percent since the beginning of 2024, bringing its total headcount to just over 121,000 employees, including temporary workers.
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Recent internal records suggest that Tesla, Elon Musk’s EV company has reduced its global workforce by more than 14 percent since the beginning of 2024, bringing its total headcount to just over 121,000 employees, including temporary workers.
CNBC reports that Tesla, Elon Musk’s electric vehicle manufacturer, has undergone a significant restructuring since 2023, with internal records indicating a substantial reduction in its global workforce. According to an internal email distribution list dated June 17, the company’s headcount now stands at approximately 121,000 employees, including temporary workers. This figure represents a stark decrease of over 14 percent compared to the 140,473 employees reported at the end of 2022.
The downsizing initiative, which began earlier this year, was first announced by CEO Elon Musk in April through a company-wide email. Initially, Musk stated that Tesla would be cutting more than 10 percent of its staff, but subsequent reports suggested that the target could be as high as 20 percent. Musk himself hinted at even larger cuts during the company’s first-quarter earnings call, citing an inefficiency level of 25 percent to 30 percent following a “long period of prosperity” that began in 2019.
There are multiple potential issues that could explain this substantial workforce reduction. Tesla is grappling with an aging lineup of electric vehicles, increased competition in key markets like China, and a perceived brand deterioration. A recent survey attributed part of this brand erosion to Musk’s “antics” and “political rants.” These factors have contributed to a slowing of sales growth, with Tesla reporting a nine percent drop in annual revenue for the first quarter of 2024 – the company’s largest decline since 2012.
The auto industry as a whole has experienced a slowdown in electric vehicle sales growth this year, following two years of rapid expansion. However, the impact on Tesla has been particularly pronounced, despite the company’s Model Y being the top-selling car worldwide in 2023.
The layoffs have not been without controversy. In at least one instance, the cuts appeared to go too far, with Tesla dismantling its entire Supercharging team, including its leader, Rebecca Tinucci. The company later had to rehire some of these employees, as evidenced by posts on LinkedIn.
Despite the workforce reductions, Tesla is attempting to maintain employee morale and incentivize performance. Musk recently announced a comprehensive review to provide stock options grants for exceptional performance, as well as awards for “anyone who does something outstanding for the company.” This move comes after a previous pause in performance-based equity awards.
Looking ahead, Tesla employees remain worried about the possibility of further layoffs, particularly in July, depending on the company’s second-quarter results. A production and deliveries report for Q2 is expected in early July, which could provide more insight into the company’s current trajectory.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
