Tesla will lay off more than 10% of its global workforce, affecting roughly 14,000 employees, to eliminate redundancies and prepare for future growth phases, according to a leaked email from CEO Elon Musk to Tesla employees.
"Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth, there has been duplication of roles and job functions in certain areas," Musk wrote.
As Tesla prepares for its next growth phase, the CEO emphasized the necessity of trimming the workforce to maintain the company's competitive edge.
The leaked communication, shared by industry insiders, explained the job cuts are a painful but necessary step towards maintaining the company's "lean, innovative and hungry" approach to its forthcoming growth cycle. "There is nothing I hate more, but it must be done," Musk wrote.
Employees affected by the layoffs were acknowledged by Musk for their contributions to Tesla's mission, thanking them and wishing them well in their future endeavors. For those remaining, Musk's message was one of gratitude and encouragement, stressing the importance of their role in developing revolutionary technologies in the automotive, energy and artificial intelligence sectors.
This workforce reduction follows Tesla's latest filing with the U.S. Securities and Exchange Commission, confirming a total global headcount of 140,473 employees by the end of 2023.
In another development, Drew Baglino, Tesla's senior vice president of powertrain and energy engineering, announced his resignation in a post on his personal X account.
Baglino, a key figure at Tesla for 18 years, reflected on his long career with the EV maker, starting in 2006 as a junior firmware/electrical engineer, during a time when the production of the world’s top-selling vehicle seemed beyond imagination.
"I made the difficult decision to move on from Tesla after 18 years yesterday. I am so thankful to have worked with and learned from the countless incredibly talented people at Tesla over the years. I loved tackling nearly every problem we solved as a team and feel gratified to have contributed to the mission of accelerating the transition to sustainable energy, a mission that I am quite passionate about," Baglino wrote.
Baglino was part of the team that built the Tesla Roadster, which laid the foundation for Tesla's future successes. Over the years, Baglino has been involved in most of the company’s major products, significantly shaping Tesla’s trajectory towards leading the electric vehicle market.
"I will always have a warm spot for the people of Tesla and Tesla products in my heart and wish the team and company the best in the future," Baglino added.
Baglino said he does not have immediate plans other than spending more time with his family and children, but he hinted at staying active.
