The Investor Manifesto
Advertisement
  • Business
  • Politics
  • Investing
  • Stocks
No Result
View All Result
  • Business
  • Politics
  • Investing
  • Stocks
No Result
View All Result
The Investor Manifesto
No Result
View All Result
Home Business

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

June 24, 2024
in Business
Tesla has downsized by at least 14% this year after Elon Musk said layoffs would exceed 10%
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

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

Previous Post

Polls say older voters want Social Security protections. Yet parties are tied for their support.

Next Post

X boss Elon Musk tempers comments about advertisers as he looks to woo them back

Next Post
X boss Elon Musk tempers comments about advertisers as he looks to woo them back

X boss Elon Musk tempers comments about advertisers as he looks to woo them back

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


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

    Recent News

    Xi Jinping’s surprise no-show at BRICS Summit fuels speculation about China’s global standing

    Xi Jinping’s surprise no-show at BRICS Summit fuels speculation about China’s global standing

    July 6, 2025
    Democrats project doom and gloom, not celebration, with July 4 messages

    Democrats project doom and gloom, not celebration, with July 4 messages

    July 6, 2025
    Tech 5: US Lifts EDA Restrictions for China, Apple Explores Third Party AI for Siri

    Tech 5: US Lifts EDA Restrictions for China, Apple Explores Third Party AI for Siri

    July 6, 2025
    Week Ahead: NIFTY Set To Stay In A Defined Range Unless These Levels Are Taken Out; Drags Support Higher

    Week Ahead: NIFTY Set To Stay In A Defined Range Unless These Levels Are Taken Out; Drags Support Higher

    July 5, 2025
    Disclaimer: TheInvestorManifesto.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.

    Popular

    Apple sued by shareholders who allege it overstated AI progress
    Business

    Apple sued by shareholders who allege it overstated AI progress

    June 24, 2025

    Read more

    Recent News

    Xi Jinping’s surprise no-show at BRICS Summit fuels speculation about China’s global standing

    Xi Jinping’s surprise no-show at BRICS Summit fuels speculation about China’s global standing

    July 6, 2025
    Democrats project doom and gloom, not celebration, with July 4 messages

    Democrats project doom and gloom, not celebration, with July 4 messages

    July 6, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Copyright © 2025 theinvestormanifesto.com | All Rights Reserved

    No Result
    View All Result
    • Business
    • Politics
    • Investing
    • Stocks

    Copyright © 2025 theinvestormanifesto.com | All Rights Reserved