Tesla is reportedly getting 'absolutely hard core' about more layoffs, according to Elon Musk
It’s only been two weeks since Tesla began reducing its workforce by ten percent, a move that impacted at least 14,000 staffers. Now, even more pink slips are coming. The company let go of two senior executives today and plans to lay off hundreds more employees, as reported by The Information. These layoffs impact the entire Supercharger team, including senior director Rebecca Tinucci and 500 staffers. Daniel Ho, head of the new vehicles program, was also laid off, along with his team. Tesla’s public policy team is also being dissolved, which was led by former executive Rohan Patel. CEO Elon Musk sent out a company-wide email that seemed more like a threat than anything else. "Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction," Musk wrote. "While some on exec staff are taking this seriously, most are not yet doing so." This could be just the beginning. Musk also said that any staffers working under executives who “don’t obviously pass the excellent, necessary and trustworthy test” would also get cut. When all of this is said and done, Tesla’s headcount could be reduced by as much as 20 percent, as recently suggested by Bloomberg. This adds up to more than 20,000 employees. Just how “hard core” is Musk about reducing costs? Well, a judge recently rejected his proposal for a pay package that would grant him $55.8 billion of Tesla’s money, which was referred to in court as “an unfathomable sum” that was unfair to shareholders. Chancellor Kathaleen St. Jude McCormick went on to call it “the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude.” Sounds kinda soft core to me. This is shaping up to be a really crappy year for Tesla, even if its stock price seems to be living in a parallel universe. Profit margins have sunk to a six-year low. The company’s most recent earnings report was abysmal, with profits falling by 55 percent. The Cybertruck continues to be something of a dangerous joke. Tesla’s Autopilot software was recently linked to 14 deaths. It has also reportedly given up on its budget-friendly EV in favor of a robotaxi, because why make a car everyone would want to buy instead of something a few taxi companies will buy? On the plus side, Tesla doesn’t really pay taxes, which is pretty hard core.This article originally appeared on Engadget at https://www.engadget.com/tesla-is-reportedly-getting-absolutely-hard-core-about-more-layoffs-according-to-elon-musk-151635645.html?src=rss
It’s only been two weeks since Tesla began reducing its workforce by ten percent, a move that impacted at least 14,000 staffers. Now, even more pink slips are coming. The company let go of two senior executives today and plans to lay off hundreds more employees, as reported by The Information.
These layoffs impact the entire Supercharger team, including senior director Rebecca Tinucci and 500 staffers. Daniel Ho, head of the new vehicles program, was also laid off, along with his team. Tesla’s public policy team is also being dissolved, which was led by former executive Rohan Patel.
CEO Elon Musk sent out a company-wide email that seemed more like a threat than anything else. "Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction," Musk wrote. "While some on exec staff are taking this seriously, most are not yet doing so."
This could be just the beginning. Musk also said that any staffers working under executives who “don’t obviously pass the excellent, necessary and trustworthy test” would also get cut. When all of this is said and done, Tesla’s headcount could be reduced by as much as 20 percent, as recently suggested by Bloomberg. This adds up to more than 20,000 employees.
Just how “hard core” is Musk about reducing costs? Well, a judge recently rejected his proposal for a pay package that would grant him $55.8 billion of Tesla’s money, which was referred to in court as “an unfathomable sum” that was unfair to shareholders. Chancellor Kathaleen St. Jude McCormick went on to call it “the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude.” Sounds kinda soft core to me.
This is shaping up to be a really crappy year for Tesla, even if its stock price seems to be living in a parallel universe. Profit margins have sunk to a six-year low. The company’s most recent earnings report was abysmal, with profits falling by 55 percent. The Cybertruck continues to be something of a dangerous joke. Tesla’s Autopilot software was recently linked to 14 deaths. It has also reportedly given up on its budget-friendly EV in favor of a robotaxi, because why make a car everyone would want to buy instead of something a few taxi companies will buy? On the plus side, Tesla doesn’t really pay taxes, which is pretty hard core.This article originally appeared on Engadget at https://www.engadget.com/tesla-is-reportedly-getting-absolutely-hard-core-about-more-layoffs-according-to-elon-musk-151635645.html?src=rss
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