It’s only been two weeks since the 10 percent increase, a move that affected at least 14,000 employees. Now come more pink panties. The company laid off two senior executives today and plans to lay off hundreds more employees. .
These layoffs impact the entire Supercharger team, including Senior Director Rebecca Tinucci and 500 employees. Daniel Ho, head of the new vehicle program, was also fired along with his team. Tesla’s public policy team, which was led by former CEO Rohan Patel, will also be disbanded.
CEO Elon Musk sent a company-wide email that seemed more like a threat than anything else. “Hopefully these actions make it clear that we need to be absolutely tough on staffing levels and cost reductions,” Musk wrote. “While some leaders are taking this seriously, most are not yet.”
This could be just the beginning. Musk also said that any employees who work under management and “obviously do not pass the excellent, necessary and trustworthy test” would also be fired. When all of this is said and done, Tesla’s workforce could be reduced by up to 20 percent. . That’s more than 20,000 employees.
How “stubborn” is Musk about cutting costs? Well, a judge recently awarded him $55.8 billion of Tesla’s money, which the court described as a “staggering sum” that was unfair to shareholders. Chancellor Kathaleen St. Jude McCormick further called it “the largest potential compensation opportunity ever witnessed in public markets by several orders of magnitude.” Sounds kind of softcore to me.
This is set to be a really bad year for Tesla, even though the share price seems to be living in a parallel universe. Profit margins have fallen to their lowest level in six years. The company’s latest report showed a 55 percent drop in profits. The Cybertruck remains. Tesla’s Autopilot software was . It has also reportedly advocated for a robot taxi, because why build a car that everyone wants to buy instead of something that only a few taxi companies buy? On the plus side, it’s a pretty hard core.
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