Tesla to cut more than 10% of workforce, report claims | Mashable.
Tesla to cut more than 10% of workforce, report claims
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| "It must be done." Credit: NurPhoto/GettyImages |
Tesla is laying off more than 10 percent of its workforce globally.
This is according to a company-wide email sent to Tesla employees by CEO Elon Musk. The email was first reported on by Electrek.
In the email, Musk lays the blame on the company's rapid growth, which caused "duplication of roles and job functions in certain areas."
"As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity. As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 percent globally," the email states.
"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," wrote Musk.
What Musk doesn't mention is that the layoffs come after a challenging quarter for Tesla, in which the carmaker's deliveries and revenue fell well off predicted figures.
The news comes after rumors that Tesla is preparing to lay off as much as 20 percent of its workforce. Musk's phrasing (more than 10 percent) indicates that fewer people will be fired than the reported figure, though it doesn't reveal how much, exactly.
Tesla has reportedly abandoned plans to launch a cheaper electric car; instead, the company is preparing to unveil a Tesla Robotaxi in August.
Topics Tesla
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Tesla is the highest selling EV manufacturer in the world. Sold 300.000 more cars than its biggest competitor, BYD, in 2023. This year, yes, Tesla’s deliveries fell about 20% in the first quarter compared to the last quarter of 2023… but BYD deliveries fell 43% in the same timeframe. So Tesla is still by far the biggest EV producer.
ReplyDeleteTesla also has the highest selling car of ANY type(yes, including ICE cars), the Tesla Model Y.
But Tesla increasing the efficiency of its workforce is probably a smart move. Also, some Tesla jobs will be replaced by robots.
Tesla has enormous potential for growth, whether you look at the EV market(which will eventually replace the entire ICE car market), or Tesla Energy and their solar panel production which is creating billions in revenue, or Tesla FSD which with the latest version(12.3.4) has become very close to ready for level 5 fully autonomous driving… or the Tesla Optimus robot, the advanced robot of its kind… Tesla is nit just able to produce prototypes like some of the others in that robot business, they have the capacity to manufacture such robots in their Gigafactories in very large numbers and thereby deliver them at relatively low prices… something their competitors can not do. The Tesla robots have a potential of becoming an even larger business than the Tesla cars.
Tesla’s future is bright.
Gotta get that stock value up, paying workers means less money for investors.
ReplyDeleteMr Elon musk has finally created a private page recently because he wanted to put an end to impersonation from people claiming to be him, don’t be scammed okay, send him a direct message on telegram application through the link below 👇 , you might be lucky to get a response back from him just like I did
Deletehttps://t.me/Theonlyelon
oh thank God, finally.
Deleteyes you can message him now
DeleteBut, but, but, Musk is a genius.....
ReplyDeleteyes that’s true.
DeleteSuch a visionary! Others would think build better products, cars that have resale value and trucks that don't attract rust. But he's a great visionary. Our hero! 😎😉
ReplyDeleteLayoffs worked so well for X, I hope it works equally well for Tesla.
ReplyDeleteLet him.....
ReplyDeleteThey’re going to have to prepare to repurpose their assembly line for gas engines, in the near future.
ReplyDeletethey already contribute to ICE companies by laundering their emissions for profit.
DeleteBut that’s not important…
https://www.thedrive.com/news/tesla-continues-to-launder-emissions-with-1-79-billion-in-regulatory-credit-sales?
Like VW and others!
ReplyDeleteNo need to panic, Elon Musk still have billions under his belt because he is supposed to be one of most wealthiest men on earth 😆😆
ReplyDeleteToo bad federal state and local governments don’t follow the same rules. Instead of cutting costs when income is down they just raise taxes. The government is trying to do the same thing to private industry by FORCING people to buy EVs. Not a good solution
ReplyDeletehow exactly are you forced to purchase just one style of vehicle?
DeleteCalifornia has banned the purchase of internal combustion engine vehicles starting by 2035. And 8 other liberal states are following the insanity
Deletehe state's Advanced Clean Cars II rule requires zero-emission vehicles to represent 35% of new cars and light trucks in lots by 2026, and then 68% by 2030, before reaching 100% in 2035.
DeleteThis comment has been removed by a blog administrator.
ReplyDeleteJust here for the boot licking comments
ReplyDeleteHitest Ceon dont try to explain that to trisomic people. You are Right
ReplyDeleteBy the way this is after you work crazy hours for him, then you just get tossed in bad times, really happy I'm not working for this guy.
ReplyDeleteElon the incompetent.
ReplyDeleteThe sad part of not working for a union company. I can't imagine working for such an unethical individual.
ReplyDeleteTime to support tesla even harder now💪
ReplyDeleteahh NOO
Deletehttps://media.tenor.co/gmXobY5nYVMAAAAC/eating-pijpen.gif?t=AAYWJAWTcJYFCAsjxwCC2g&c=VjFfZmFjZWJvb2s&fbclid=IwAR0zU_Fhv9xGkv93Qh7-2WV33dGeY5uQZ8Z5oOVSBRMLUkm_1-DBadZPPq4
DeleteMeanwhile Tesla is worth over 518.7 billion dollars….
ReplyDeleteMr Elon musk has finally created a private page recently because he wanted to put an end to impersonation from people claiming to be him, don’t be scammed okay, send him a direct message on telegram application through the link below 👇 , you might be lucky to get a response back from him just like I did
Deletehttps://t.me/Theonlyelon
He is going down and so are many car manufacturers
ReplyDeleteYet we still need to build those gas stations.
ReplyDeleteInstead of tesla model 2,they created cybertruck. Tesla model 2 we need now, not in 3 years.
ReplyDeleteWeird. One of thier recruiters has been trying to get me to sign on with them.
ReplyDeleteThey’re not cutting staff... they’re automating and replacing.
ReplyDeleteFirst is was import the people to do it cheaper.
Now it’s replace them with robotics / AI.
Mr Elon musk has finally created a private page recently because he wanted to put an end to impersonation from people claiming to be him, don’t be scammed okay, send him a direct message on telegram application through the link below 👇 , you might be lucky to get a response back from him just like I did
Deletehttps://t.me/Theonlyelon
no scam here
Deletemusk is an AI avatar not a real person. That’s the actual definition of scam!
Deletebecause of HIS mistakes
ReplyDeleteFunny how it's always the poor dopes on the factory floor/the lower level engineers that get the boot, isn't it? Is never the higher-up guys that made the poor decisions that lost the money in the first place, and whose salary/package is probably worth the same as 10-20 low-level guys put together (if not more).
ReplyDeleteBingo
DeleteWhy would he do such a thing
ReplyDeletewhen he can simply buy all the politicians he wants ?
he can’t. You have to be a natural born US Citizen. He’s not.
ReplyDeleteEVs were a fad.
ReplyDeleteElon = Egoistic clown 🤣
ReplyDeleteBidennomics
ReplyDeleteThe waterm elon freak
ReplyDeleteNobody wants their crap cars.
ReplyDeleteyes. Do love you all.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteI think you’re right when you say „a CEO that’s increasingly absent“.
ReplyDeleteElon should have tons of work to do - there’s SpaceX, Tesla and smaller endeavors like Neuralink (albeit that shouldn’t take up much of his time). Yet look at his timeline on X - he’s „tweeting“ something constantly.
He's a part-time, 99% remote contractor whom the BoD somehow irresponsibily keeps allowing/tolerating to run the multi-billion company.
DeleteYep. As soon as Musk took over X, Tesla has SUFFERED.
DeleteIt may or may not be Musk's fault, but as reported EV sales have slumped recently due to various factors. It's partly due to market saturation, most folks who can and willing to pay for a pricey EV's have got one already. A third of the US population who lives in apartments and condos simply doesn't have overnight charging capability. With increasing cost of labor, along with supply chain issues it's not easy to crank out cars. And finally in this inflationary economy most people are looking for affordable long range cars. It's like a perfect storm for a decline. However, things will likely change, but it will take some time.
DeleteHe doesn’t have tons of work to do because does not now and in fact has never contributed a single once of value to any of those companies.
DeleteThat’s going too far. He did work a lot in the past. There’s absolutely no denying that.
DeleteCitation needed
DeleteThis comment has been removed by a blog administrator.
DeleteSo what you’re saying is that he contributed money?
DeleteNot anything special or unique just some thing that we gave him for no good reason and that he doesn’t deserve and that’s what he contributed to these companies, money?
Wow, I stand corrected. 🙄
Musk being absent may actually benefit Tesla
DeleteOnce he‘s really gone, yes. But don‘t you think he‘s not currently messing with everything going one somehow still.
DeleteNot if he fails to delegate. Right now there are simply no real decisions being made. Even the model development during the whole Tesla history reflect that - Tesla has always only developed a single new model at a time = as much as Elon could micromanage.
DeleteWho's running the company in his stead, though? Baglino? Not anymore...
Delete👍👍👍👍
DeleteEvery time you see a company declaring that they are laying off X% of their workforce, you know that the management of the company has failed to ... manage the company and instead of taking responsibility and finding solutions they have chosen to shift the blame and the pain down the ranks to the line workers. Destroying trust in the company and good will, broadly advertising the company as a bad place to work for, flagging up that you as a worker for this company is nothing more than a (temporary) expense category that it would get rid off as soon as possible. And the worst part - it is a short-term fix. The gains will be only really seen in the short term as in middle term the productivity will go down, best people will leave to other companies, new people will need to be trained up again, institutional knowledge will get lost, .. Car manufacturing is not a throwaway electronics manufacturing job - total lifecycle of a single car model can be as long as 25 years. Keeping people around from very start of the design process until the end of production and then up until end of support is very important to maintaining good long term customer satisfaction.
ReplyDeleteThere is a reason why serious experienced car manufacturers very rarely lay people off. You can actually find car makers that have not really done any significant layoffs since the middle of last century. Individual people that perform badly or create significant problems can be laid off at all times, no need for top-down wave.
So, mostly, I agree with the sentiment here. This is due to bad decision making, inattentiveness, and setting unrealistic expectations by Musk. Of course, Musk isn't going to assign himself the blame or the pain for it, so we see these mass layoffs.
DeleteHowever, when you say experienced car manufacturers very rarely lay people off: Ford, Stellantis, GM, BMW, Jaguar Land Rover, Renault and others have all either done or announced layoffs recently, though none as big in number or percentage of total workforce as Tesla's 10%. It's unfortunately all too common as a response to reduced demand for certain models, or models being cancelled or phased out.
You can certainly find automakers that rarely, if ever, do layoffs. That is usually more due to competent management so that the company isn't put in a position where layoffs make sense, as well as local expectations, labor protections, and union negotiations making layoffs very difficult and costly for the companies doing them.
So the only new successful mass manufacturer of autos that North America has seen in the last 50 years should start playing by the rules that doomed all the previous attempts?
DeleteTesla had to scale quickly to bring down per unit manufacturing cost. It couldn't wait for the automation that it knew would be coming or it would have gone bankrupt so it filled the gap with workers.
I just think your comparing 2 very different models for building an auto company and pre judging that the "non-Tesla" model is somehow better and to be aspired to. Sure if you wanted to still be driving ICE vehicles.
Yes, the model that treats workers as less disposable is the better system.
DeleteCan you explain what you mean by failed attempts over the last 50 years? How are they failed if they are still producing cars?
I said NEW auto manufacturers. Good Lord people learn to read. I am neutral on unions actually. They can be good or bad. Just like employers can be good or bad. I don't see a constant news drumbeat clamoring to unionize Apple's US workforce for example.
Delete"doomed"? There are plenty of car makers that have been around for a century now. Doing exactly that - thinking in the long term, including about their employees. And are still doing great.
DeleteYou're correct there has been no consolidation of automakers in the last 50 years nor closing of plants nor a decline in the number of auto workers. Yes, if you ignore all of that, then you are correct.
Deletenot discussing the specifics of these layoffs, but there is one major difference between Tesla and most car manufacturers which is how vertically integrated they are. legacy manufacturers use a lot of suppliers (thousands) that employ a lot of people. I don't have precise numbers but I think it's safe to say that the ratio is quite different at Tesla.
ReplyDeleteAnother thing that will bite them. Every car maker was once 100% vertically integrated. They learned to outsource for the sake of flexibility and risk management. Tesla will learn that the hard way soon, too.
DeleteLots of people claim that, but what is the difference in vertical integration between a Model Y and any kind of Toyota?
DeleteLike what Parts does Tesla produce in-house that Toyota doesn’t?
Tesla order parts on the open market just as everyone else. They just brag about being "vertically integrated" because it sounds like a smart thing. They buy battery cells from third party suppliers, they buy lights, screens, wires and switches, tires, wheels and brakes, they order ECUs to be made by external suppliers and glass to be cut by externals. No different than everyone else.
DeleteThere's a reason that layoffs are usually seen as positive if you think about it in terms of Price's Law and Pareto's Law: Price's law states that when you take the square root of the number of employees in an organization, that tells you how many people are doing half the work. This is slightly different than Pareto's law, which says 80 percent of the work is done by 20 percent of the people.
DeleteFirst of all, I would love you going to the assembly line where every person has a job to do and no car would be "done" if even a single assembly station is left unoccupied and try to apply your "law" there.
DeleteAnd how is that any reason for mass, arbitrary layoffs? You can lay off lazy people or those failing to perform at any time. You don't need to also lay off a thousand other people at the same time. Or you can also retrain people or move them to a different position in the company where their particular skills are best used, combined with the already made investment into their knowledge of the company processes. Mass layoffs make zero sense from company efficiency perspective.
Time for efficiency is when you are hiring people - have a well defined position, give effective training and support. Integrate the new person into the team as fast and as deep as possible.
Good point about assembly line workers. And it's obviously not a "law". LOL! You're taking it all too black and white. Why does almost everyone on social media think in absolutes? Rarely is anything in absolutes and, quite often, two things can be true.
DeleteYou say that the layoffs are arbitrary, but what evidence do you have to think it's arbitrary? At this point, nobody knows who is getting laid off or why. Plus, I seriously doubt that it was just "arbitrary".
Maybe Tesla is doing all the things you mentioned (such as retraining or reassigning people) as much as possible in addition to layoffs. Again, 2 things can be true.
You say that "Mass layoffs make zero sense from company efficiency perspective" but what do you honestly know about how Tesla is currently using the approximately 140,000 people and how efficient/inefficient they are?
So you're using made up laws not based in reality to justify destroying workers lives?
DeleteHow is this different than Europeans deciding the Native America's are savages and thus can be killed off for capitalist expansion?
Wow, that's one Hell of a jump to genocide. It's not even close to the same thing. Sheesh! I was simply pointing out that companies tend to have people who don't do a lot of work, hence layoffs happen. It's unfortunate that people lose jobs, but it happens all the time.
DeleteThis is the real reason Musk hates unions.
DeleteUnions didn't help the workers laid off CHRISTMAS '08 AT BMW PLANT OXFORD.
DeleteLOLOL dude doesn't know facts.
DeleteVery good dignostics, the prolem is very clear and not surprising at all, low Tesla product demand shifting to high chineese company demand because they offering a product of less 10,000$ while Model3 is 35,000$ since launch it doesnt get shipper even if the battery cost get shiper from 150$/kwh at lanch to 54$/kwh now. Totally management faillure starting when Musk was loving on LFP Tech saying its too heavy and that chineese will not come to a breakthough there taking big confidence in his research lab which didnt give him that price level and even he give him it didnt show it on his 35,000$ from the 2020 year of launch.
DeleteWhile I agree, Wall Street often rewards companies that layoff employees. Be interesting how Wall Street "warms" to this news.
DeleteLike BMW plant Oxford Christmas '08?
DeleteThey weren't even told. Did a whole day's work then just told to leave.
You mean Mini plant. The local management got an earful after that and most positions were soon restored. Taking over a factory with completely different culture inside it is not an easy process.
DeleteSo the plant closings across the US throughout the 70's, 80's,90's and oh wait the 2000's don't count. Ask the people of Flint, or Huron or Detroit or Sandusky... You have a very selective memory
DeletePlants closing across the US had nothing to do with Unions. American companies would have done that if unions never existed.
DeleteNo. They were not restored for a long time and the "local management" were Germans from BMW.
DeleteI was there.
"There is a reason why serious experienced car manufacturers very rarely lay people off." yes its unions
DeleteUAW carmakers have layoffs all the time.
DeleteThey do but years after it would have made a difference and with a most that want to moving to a new job that matches there skill less then there current one
DeleteIt’s a business not a charity. It’s a place to make money not a community center. You can delete your soy dissertation now.
DeleteUsing "it's a business" to excuse anything a corporation does is a first cousin to politicians excusing any wildly offensive thing they spout with "it was a joke". We should accept neither.
Delete"It’s a badly run business, not a charity. It’s a place for investors to make money not a good place to work." /s
DeleteA place for traders to make money maybe, investors not so much these days.
DeleteNo one said it was a charity. Are you lost?
DeleteYeah, you must be right. I see where Silicon Valley started laying off employees the first weeks of this year. Failed companys like MICROSOFT. Golly gee, I'd better sell my MSFT right now if not sooner. Source? Far left NPR, they're never ever wrong about anything. Oh, other stks to sell........Meta, Amzn, Google, TikTok, Salesforce. Yep, a clear indication of failed companys. Sell, sell, sell 'em now! Geeze
DeleteYou have no idea what you're talking about. "Very Rarely" "last century" lolol
DeleteFord layoffs in January 2024. 2,000
GM layoffs December 2023. 2,000
BMW layoffs Q1 2024. 16,000
Volkswagon layoffs December 2023. 30,000
Renault layoffs 2020. 15,000
Very kindly, shut the literal f up. haha
It's funny how you just read the headlines and have no idea what is the difference between laying people off (a bunch of people loose their job) and reducing headcount in particular sectors (people that go away on their own or retire do not get replaced by new hires, as would have been normally the case, and some remaining people get offered retraining to other sectors or locations). Temporary workers contracts may not be extended, but a permanent employment position at a company like BMW is just that - permanent.
DeleteNone of my examples are temporary worker layoffs or contracted labor layoffs. Nice try, but you're still wrong.
DeleteThose companies don't fire people (at least usually, it may happen if they close a location), they reduce headcounts by several methods such as not renewing temporal workers, offering incentives for workers to voluntarily leave the company or provide early retirement schemes.
DeleteThe end result may be similar (less workers overall) but the method is quite different, in those companies if you are a permanent employee you are not going to get fired (unless your location closes or you do something stupid/illegal).
The companies that I stated? They were not temporary or contracted workers.
DeleteVW's layoffs are going to be achieved by early retirement schemes not by direct layoffs for example. As for BMW i don't see any news about mass layoffs in Q1 2024, just about BMW providers losing contracts witht BMW and having to fire people, Ford yes, they fired some people. As for Renault the final number was way lower (less than 2k) and spread over 4 years, with some being proper layoffs as sites closed or were repurposed while others where early retirements, their original 15k plans were reduced big time when they sat with the unions to negotiate the layoffs.
DeleteThis comment has been removed by a blog administrator.
Deleteits customers have the highest loyalty in the business, as witnessed by surveys,
DeleteConsumer reports surveyed its 330,000 members and Rivian was first in brand loyalty followed by Mini, BMW, Porsche and then Tesla...
The Bloomberg Intelligence survey everyone is so excited about surveyed only 1000 people....
Tesla when they literally exist to make the world a better place.
Tesla only exists for Elon ego and wallet - do they run all their factories on renewables or use recycled materials....they actually glue batteries in so they can t be given a second life...
Tesla stalled US transition to BEVs by 10 years, compared to EU, by manufacturing a charging standard war, just to line Elons pockets a bit more.
DeleteSales can't be strong if they are dropping, which they have been.
DeleteCome join the rest of us in reality.