Electrek: Tesla lays off ‘more than 10%’ of its global workforce

[Amps]

Tesla has announced layoffs of “more than 10%” of its global workforce in an internal company-wide email. We exclusively reported yesterday that Tesla was prepping a massive layoff.


For the last few months, it has looked like Tesla might be preparing for a round of layoffs. Tesla told managers to identify critical team members, and paused some stock rewards while canceling some employees’ annual reviews. It also reduced production at Gigafactory Shanghai.

Now those rumors have been confirmed – though with a lower number – in a company-wide email sent by Musk, which leaked soon after it was sent. The full text of the email is below:

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. 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% globally. 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.
I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.
For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.
Thanks,
Elon

Additionally there are reports that some employees have already been locked out of system access.


https://electrek.co/2024/04/15/tesla-lays-off-more-than-10-of-its-global-workforce/

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[Maxx]

10% seem to be the magic number. Rivian announced in February they are laying off 10% as well. Their stock is all time low today (that is until tomorrow).

 

[Newton]

It is pretty common for tech companies to lay off this amount. The first thing a new manager does is to send out memos about "synergy" and "family" and "team building" and maybe announce some retreat that happens to be near one of their vacation homes so that they can write it off. The next is to rename everything so that all the websites have to be updated and new business cards issued. Then they reorganize their divisions to make them look better on the org chart. When that doesn't lead to spreadsheet profit magic, it's time for LAYOFFS! That is how you get manger cred for your next job, look at how much money I saved.

Upper management is one of the most corrosive substances on earth. It takes a lot of effort to train a new person even if they are very smart and experienced, and more if they are not. Just dumping 10% and hiring new is what the white board jockys think is smart and cool, but it wastes a lot of time for the remaining 90%. I was neither in training nor HR (I was the guy who knew how to write obscure things like device drivers and compilers) but I spent a good portion of my time interviewing and training.

 

[Danface]

It is pretty common for tech companies to lay off this amount. The first thing a new manager does is to send out memos about "synergy" and "family" and "team building" and maybe announce some retreat that happens to be near one of their vacation homes so that they can write it off. The next is to rename everything so that all the websites have to be updated and new business cards issued. Then they reorganize their divisions to make them look better on the org chart. When that doesn't lead to spreadsheet profit magic, it's time for LAYOFFS! That is how you get manger cred for your next job, look at how much money I saved.

Upper management is one of the most corrosive substances on earth. It takes a lot of effort to train a new person even if they are very smart and experienced, and more if they are not. Just dumping 10% and hiring new is what the white board jockys think is smart and cool, but it wastes a lot of time for the remaining 90%. I was neither in training nor HR (I was the guy who knew how to write obscure things like device drivers and compilers) but I spent a good portion of my time interviewing and training.

NO! they maximizing ROI by shifting needs and reasources to areas that will synergistly add value while actualizing latent investments ... DUH

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