Tesla\u2019s\u00a0hefty 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.<\/p>\n
The latest figure is not from precise payroll data, but from the number of people who are on Tesla\u2019s \u201ceverybody\u201d email distribution list as of June 17, a tally viewed by CNBC.<\/p>\n
Tesla CEO\u00a0Elon Musk\u00a0sent an email to \u201ceverybody\u201d that day. He told employees that, \u201cOver the next few weeks, Tesla will be doing a comprehensive review to provide stock options grants for exceptional performance.\u201d He added that option grants will also be awarded to \u201canyone who does something outstanding for the company.\u201d Tesla\u2019s plan to reinstitute options grants, after previously pausing performance-based equity awards, was reported first by\u00a0Reuters.<\/p>\n
Tesla\u2019s layoffs announcement landed in April, when Musk sent out a\u00a0companywide email\u00a0telling employees that the automaker would be cutting more than 10% of its staff. Layoffs at the point were already underway.<\/p>\n
Bloomberg\u00a0reported\u00a0that Musk was aiming for a 20% staff cut. Musk indicated that the number could be even bigger. On the company\u2019s first-quarter earnings call later in April, he said Tesla had reached an inefficiency level of 25% to 30% after \u201ca long period of prosperity\u201d that began in 2019.<\/p>\n
\u201cWe\u2019ve made some corrections along the way,\u201d Musk said on the call. \u201cBut it is time to reorganize the company for the next phase of growth.\u201d<\/p>\n
In a\u00a0filing\u00a0for the fourth quarter,\u00a0Tesla\u00a0said its employee headcount worldwide at the end of December was 140,473, a number that represents salaried and hourly staffers. The \u201ceverybody\u201d email list includes temps. At around 121,000, that suggests Tesla has reduced overall headcount by at least 14% since the end of 2023.<\/p>\n
Tesla didn\u2019t immediately respond to a request for comment.<\/p>\n
In at least one instance, Musk\u2019s headcount reductions went too far. Tesla\u00a0dismantled 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<\/p>\n
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\u00a0recent survey\u00a0attributed partly to Musk\u2019s \u201cantics\u201d and \u201cpolitical rants.\u201d For the first quarter, Tesla\u00a0reported\u00a0a 9% drop in annul revenue, the biggest decline since 2012.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Musk has promised investors the company will soon publish a new \u201cMaster Plan,\u201d which would be his fourth, and that Tesla will reveal its design for a \u201cdedicated robotaxi\u201d on Aug. 8. A production and deliveries report for the second quarter is expected from Tesla during the first week of July.<\/p>\n
Tesla shares were little changed on Friday at $181.71. The stock is down 27% this year, while the Nasdaq is up 18%.<\/p>\n<\/p>\n
Tesla\u2019s\u00a0hefty 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\u2019s \u201ceverybody\u201d […]<\/p>\n","protected":false},"author":0,"featured_media":5469,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5468"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5469"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}