Tesla Layoffs: EV Maker Fires Employees From Software, Engineering, Service Teams, Says Report

Tesla Layoffs: Reports have indicated that Tesla's CEO has proposed the potential for even more substantial layoffs. Discussions revolve around a potential 20 per cent reduction in the workforce

Tesla Layoffs ( Image Source :Getty )

Tesla Layoffs: Elon Musk’s EV maker does not seem to be stopping the firing spree anytime soon. In another fresh round of layoffs, Tesla has laid off employees from its software, service, and engineering departments, reported tech publication Electrek, citing sources. The decision follows the dissolution of Tesla's EV charging division under the leadership of Elon Musk, which was followed by the company's announcement last month regarding a workforce reduction exceeding 10 per cent globally.

The EV manufacturer has been facing mounting pressure stemming from declining sales and escalating competition among automakers, exacerbated by heightened interest rates dampening the uptake of electric vehicles. In response to these challenges, Tesla announced last month that it anticipates incurring costs exceeding $350 million in the second quarter due to extensive layoffs. These job cuts affected several key executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.

Reports have indicated that Tesla CEO Elon Musk has proposed the potential for even more substantial layoffs. Discussions revolve around a potential 20 per cent reduction in the workforce. If implemented, this measure could lead to the elimination of over 20,000 positions within the company.

"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've done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10 per cent globally. There is nothing I hate more, but it must be done,” the Tesla CEO has reportedly said.

Furthermore, in April, Tesla said that it is continuing to develop "new models" using existing platforms and production lines. This strategic move is anticipated to enable the company to exercise greater control over its capital expenditures, which will help it overcome the challenges it faces today.