Tesla announced mass layoffs, approximately 10 percent of all employees will be out of a job

According to an internal e-mail obtained by the Electrek portal, Tesla is said to be planning a large cut in the number of employees. After a few weeks ago the firstč announced a "year-over-year" drop in car sales after 2020, approximately 10 % employees at Tesla will be out of a job. That means at least 14,000 of the 140,473 employees that Tesla officially listed at its last earnings call. So far, it is not known which teams or which employee profiles will be the target of cuts.

"This is absolutely the last on the list of measures that we must take," Tesla CEO Elon Musk wrote in an email he published. Electrek. In a later post on X, Musk wrote, “every 5 years we have to reorganize and prepare the company for growth again".

According to a Bloomberg report, this latest round of layoffs also includes senior director Drew Bagliano, who is also leaving the company. Baglino confirmed this information on Xu. He was part of the company for over 18 years, during which time he played various roles, the last of which was head of Tesla's energy and powertrain division. Among other things, Electrek noticed that Tesla's branding also disappeared from the X account of one of the key members of the legal department.

Today's (April 17) layoff announcement is the latest in a string of bad news for Tesla. Before the quarterly results presentation, which will be held on April 23, the company announced that their sales estimate for this time period was not accurate. Even in January, they announced that sales growth would not be the way they wanted or expected. All this is happening before the preparation for the launch of new vehicle models, and the question is how all this will affect Tesla's sales in the future.

Tesla is also reportedly abandoning its plans to produce an affordable Model 2, which would cost around $25,000, as it will instead focus on a new robot taxi. The company is facing increasing pressure from dwindling demand for its electric vehicles, while competition from Chinese manufacturers is getting tougher. Last year, Tesla lost the title of the world's largest manufacturer of electric vehicles when China's BYD aggressively took over the top spot by producing 3.02 million electric vehicles in the same time period, while Tesla only produced 1.81 million. million.