Tesla, drastic cost cutting plan: dismissal of up to 14 thousand employees. Two top executives leave behind

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Tesla cuts its global workforce by more than 10%. In an email to employees reported by the Bloomberg agency, Elon Musk explains that the initiative is due in some cases to the duplication of roles but above all to the need to reduce costs. The company has over 130 thousand employees globally: a 10% cut therefore potentially equates to at least 14 thousand workers being laid off.

Tesla stock is heavy on Wall Street following the announcement. “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company in terms of reducing costs and increasing productivity,” CEO Elon Musk wrote in a letter to workers, according to what was learned by the Reuters agency. “As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our workforce by more than 10% globally,” it continues. Tesla shares have lost 31% since the beginning of the year, due to a decline in demand for electric cars and fierce competition from Chinese rivals. Recently, Tesla reported that it recorded its first annual decline in vehicle deliveries since 2020, when Covid-19 curbed production and sales.

Senior Vice President Drew Baglino has left the automaker, people familiar with the matter said, the second departure of a top executive in eight months.

Vice President Baglino leaves

Meanwhile, according to what Bloomberg has learned, senior vice president Drew Baglino has resigned from the company. He led the engineering and technological development of batteries, motors and energy products. The company veteran, with 18 years of experience, has shared the stage with Elon Musk at several events, including Tesla’s investor day just over a year ago.

Also Tesla’s vice president for public policy and business development, Rohan Patelleft the automaker.