• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Tesla has downsized by at least 14% this year after Elon Musk said layoffs would exceed 10%
Editor's Pick

Tesla has downsized by at least 14% this year after Elon Musk said layoffs would exceed 10%

by June 24, 2024
by June 24, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Tesla’s hefty downsizing in 2023 has reduced its global headcount to just over 121,000 people, including temps, internal records suggest, indicating that the automaker has slashed more than 14% of its workforce so far this year.

The latest figure is not from precise payroll data, but from the number of people who are on Tesla’s “everybody” email distribution list as of June 17, a tally viewed by CNBC.

Tesla CEO Elon Musk sent an email to “everybody” that day. He told employees that, “Over the next few weeks, Tesla will be doing a comprehensive review to provide stock options grants for exceptional performance.” He added that option grants will also be awarded to “anyone who does something outstanding for the company.” Tesla’s plan to reinstitute options grants, after previously pausing performance-based equity awards, was reported first by Reuters.

Tesla’s layoffs announcement landed in April, when Musk sent out a companywide email telling employees that the automaker would be cutting more than 10% of its staff. Layoffs at the point were already underway.

Bloomberg reported that Musk was aiming for a 20% staff cut. Musk indicated that the number could be even bigger. On the company’s first-quarter earnings call later in April, he said Tesla had reached an inefficiency level of 25% to 30% after “a long period of prosperity” that began in 2019.

“We’ve made some corrections along the way,” Musk said on the call. “But it is time to reorganize the company for the next phase of growth.”

In a filing for the fourth quarter, Tesla said its employee headcount worldwide at the end of December was 140,473, a number that represents salaried and hourly staffers. The “everybody” email list includes temps. At around 121,000, that suggests Tesla has reduced overall headcount by at least 14% since the end of 2023.

Tesla didn’t immediately respond to a request for comment.

In at least one instance, Musk’s headcount reductions went too far. Tesla dismantled its Supercharging team, consisting of hundreds of employees, including its leader, Rebecca Tinucci. The company later hired some of those people back, according to posts on LinkedIn

The broader cuts coincide with a slippage in sales at Tesla as the company reckons with an aging lineup of electric vehicles and increased competition in China as well as brand deterioration that a recent survey attributed partly to Musk’s “antics” and “political rants.” For the first quarter, Tesla reported a 9% drop in annul revenue, the biggest decline since 2012.

Across the auto industry, EV sales growth slowed this year after two years of rapid expansion. The slide was particularly acute for Tesla, whose Model Y was the top-selling car worldwide in 2023.

A Tesla employee, who asked not to be named in order to discuss sensitive internal issues, told CNBC that some factory workers are fearful more layoffs could follow in July depending on second-quarter results.

Musk has promised investors the company will soon publish a new “Master Plan,” which would be his fourth, and that Tesla will reveal its design for a “dedicated robotaxi” on Aug. 8. A production and deliveries report for the second quarter is expected from Tesla during the first week of July.

Tesla shares were little changed on Friday at $181.71. The stock is down 27% this year, while the Nasdaq is up 18%.

This post appeared first on NBC NEWS
You Might Also Like
  • India’s 2nd-wealthiest person charged by U.S. in $250 million bribery scheme
  • Elon Musk and investors offering $97.4 billion for control of OpenAI, WSJ reports
  • Big Lots files for bankruptcy protection as it promises to keep offering ‘extreme bargains’
  • Disney scraps plan for new Florida campus as DeSantis feud heats up
Share
0
FacebookTwitterPinterestWhatsapp

previous post
LongHorn up, Olive Garden down: Darden earnings hint at dinings sales drag
next post
Rite Aid shutting down 27 more locations, bringing closure total to nearly 550 nationwide

You may also like

Semtech Unveils New Brand Reflecting Company’s Vision to Enable a...

March 10, 2023

GM’s 2025 EV production capacity target in doubt after Barra...

July 17, 2024

Dollar Tree says it’s winning over higher-income shoppers and may...

March 27, 2025

Bank of America to pay more than $100 million for...

July 13, 2023

Sentiens unveils its Multi-Technologies LPWAN Core Network Offer

January 27, 2023

Boeing workers to vote on new proposal that could end...

October 21, 2024

Citigroup to lay off 20,000 employees in CEO Jane Fraser’s...

January 13, 2024

Target will stop accepting personal checks

July 8, 2024

Southwest Airlines flight pause lifted after technology issues halted departures

April 20, 2023

Abortion bans and anti-LGBTQ laws are complicating business travel

October 22, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    AMD CEO calls China a ‘large...

    May 7, 2025

    JPMorgan Chase posts record profit as...

    January 16, 2025

    Hermès to hike U.S. prices for...

    April 18, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here