- Tesla lays off high performers amid financial troubles.
- Cuts aimed at reducing costs, boosting productivity.
- Two top execs depart amidst major company changes.
Tesla management dropped a bombshell on employees Monday, revealing that the recent layoffs, which slashed some departments by a staggering 20%, were primarily due to lackluster financial performance.
The announcement comes just a week before Tesla is set to report its Q1 earnings, and the company has been grappling with narrowing profit margins for several quarters, thanks to a relentless EV price war.
Saying goodbye to the best and brightest
The layoffs, affecting a whopping 14,000 workers globally, didn’t discriminate based on performance or seniority.
Even high performers found themselves on the chopping block, with one manager lamenting, “I lost 20% of my team, some really good players too.”
Tesla claims the cuts are necessary to reduce costs and boost productivity as the company gears up for its “next phase of growth.”
Exec exodus: who’s next?
Amidst the chaos, two top executives, Drew Baglino (SVP of Powertrain and Energy) and Rohan Patel (VP of Public Policy and Business Development), decided to bid farewell to the electric car giant.
Patel cited “[b]ig overall changes” at the company, while Baglino felt it was time to move on after 18 years.
With Musk’s focus shifting towards AI, robotics, and the elusive robotaxi, it seems change is the only constant at Tesla.
