“Tesla Takes Aggressive Cost-Cutting Measures, Plans Further Job Reductions: Sources”
In recent developments, Elon Musk’s Tesla is set to implement additional job cuts and cost-saving measures as it navigates challenges in the electric vehicle (EV) market. This decision comes on the heels of a recent company-wide layoff, where Tesla slashed over 10 percent of its workforce of 140,000 employees.
In recent developments, Elon Musk’s Tesla is set to implement additional job cuts and cost-saving measures as it navigates challenges in the electric vehicle (EV) market. This decision comes on the heels of a recent company-wide layoff, where Tesla slashed over 10 percent of its workforce of 140,000 employees.
According to reports, Tesla will disband two departments and lay off a significant portion of employees from these groups as part of its cost-cutting strategy. The move is a response to the tough competition and market conditions facing the EV industry.
Elon Musk, in an email quoted by online technology publication The Information, emphasized the company’s commitment to strict cost control, stating, “I will be absolutely hardcore about headcount and cost reduction.” Musk further outlined his intention to remove any executive retaining more than three employees who do not meet the company’s standards of excellence, necessity, and trustworthiness.
Among the notable departures are Rebecca Tinucci, a senior director in EV charging, and Daniel Ho, head of new products. Most of the 500 workers in Tinucci’s Supercharger group, along with other staff under Ho’s leadership, are also expected to leave the company. Additionally, Tesla is dissolving a public policy team as part of the restructuring.
Tesla’s recent financial results reflected a 55 percent drop in quarterly earnings to $1.1 billion, reflecting the overall decline in EV sales amidst increasing competition. However, Tesla’s shares received a boost following Musk’s announcement to ramp up production of new, more affordable EV models and his successful visit to China, which resulted in a key security clearance for Tesla’s technology from the Chinese government.
Sources By Agencies
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