- Elon Musk calls for a “complete organizational overhaul” at Tesla every “half decade or so.”
- The electric vehicle giant is slashing “more than 10%” of its workforce.
- Two longtime Tesla executives, Drew Baglino and Rohan Patel, are also departing the company.
Restructuring for the next level
Elon Musk, Tesla’s CEO, has declared the need for a “complete organizational overhaul” at the electric vehicle giant every “half decade or so” to reach “the next level.” This statement comes amidst reports of mass layoffs at the company.
According to an internal memo, Tesla is slashing “more than 10%” of its workforce. Musk cited the company’s “rapid growth” leading to “duplication of roles and job functions” as the reason behind the cuts, stating, “There is nothing I hate more, but it must be done.
This will enable us to be lean, innovative, and hungry for the next growth phase cycle.”
Exec exodus accompanies restructuring
The layoffs coincide with the departure of two longtime Tesla executives: Drew Baglino, the senior vice president of powertrain and energy engineering, and Rohan Patel, the vice president of public policy and business development.
Their exits, after tenures of 18 and 7 years respectively, add to the upheaval at the company.
Tesla’s restructuring comes amidst declining sales and intensifying competition from Chinese automakers like BYD, which Musk has acknowledged as “the most competitive car companies in the world.”
As the company braces for its next growth phase, the “organizational overhaul” aims to streamline operations and position Tesla for future success in an increasingly competitive landscape.
