Electric vehicle giant Tesla has just launched another round of layoffs, affecting numerous employees across various departments, including design, engineering, and human resources.
Affected employees leaked Tesla’s layoff notice
Several Tesla employees affected by the ongoing layoffs shared the news on various online platforms, including LinkedIn and X, etc.
Numerous workers from the departments of design, engineering, product managers, and human resources, among others, disclosed on social media the layoff notice they received from Tesla via email over the weekend.
The ex-Tesla employees also released screenshots of Tesla’s emails, disclosing several details about the sudden decision.
Tesla apparently dismissed them with immediate effect and withdrew their access to the company’s systems and facilities on the same day of the announcement.
Some of the laid-off employees are reportedly still waiting for Tesla’s notice regarding key matters like separation documents, severance packages, and continuation of benefits, among others.
Previous layoff rounds
Tesla confirmed plans to lay off “more than 10%” of its global workforce in April. However, previous reports suggest the rate would be closer to 20%.
Since then, numerous high-ranking officials left the electric automaker. Tesla also dismissed the Supercharger team, which substantially helped the company dominate the electric vehicle charging industry and establish NACS as the new standard in North America.
Now, Tesla has dismissed another batch of employees as part of its cost-cutting efforts.
Tesla’s reasons
Tesla CEO Elon Musk explained to the affected employees that the ongoing layoffs are due to the company’s rapid headcount growth over the past few years.
As a result, Tesla struggled to cut costs due to hiring inefficiencies and role duplication. However, the Tesla boss also said the layoffs were about “restructuring for the next phase of growth.”
The ongoing layoffs continue to stimulate worry among Tesla employees, investors, owners, and fans. These recent moves can substantially impede Tesla’s planned projects, particularly the expansion of the Supercharger network amid the major OEMs’ shift to NACS.
It came after Tesla recorded one of its weakest financial results in a while due to the lower-than-expected electric vehicle deliveries in Q1 2024.
