Tesla has only been cutting jobs by 10 percent over the past two weeks, which has affected at least 14,000 employees. There will be more pink slips soon. According to The Information, the corporation expects to fire hundreds more workers and let rid of two top executives today.
The 500 employees of Supercharger as well as senior director Rebecca Tinucci are affected by these layoffs. Along with his staff, Daniel Ho, the director of the new cars program, lost his job. The public policy unit at Tesla, which was headed by former CEO Rohan Patel, is also being dismantled.
CEO Elon Musk sent out a company-wide email that seemed more like a threat than anything else. “Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction,” Musk wrote. “While some on exec staff are taking this seriously, most are not yet doing so.”
This could be just the beginning. Musk also said that any staffers working under executives who “don’t obviously pass the excellent, necessary and trustworthy test” would also get cut. When all of this is said and done, Tesla’s headcount could be reduced by as much as 20 percent, as recently suggested by Bloomberg. This adds up to more than 20,000 employees.
Just how “hard core” is Musk about reducing costs? Well, a judge recently rejected his proposal for a pay package that would grant him $55.8 billion of Tesla’s money, which was referred to in court as “an unfathomable sum” that was unfair to shareholders. Chancellor Kathaleen St. Jude McCormick went on to call it “the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude.” Sounds kinda soft core to me.
This is shaping up to be a really crappy year for Tesla, even if its stock price seems to be living in a parallel universe. Profit margins have sunk to a six-year low. The company’s most recent earnings report was abysmal, with profits falling by 55 percent. The Cybertruck continues to be something of a dangerous joke. Tesla’s Autopilot software was recently linked to 14 deaths. It has also reportedly given up on its budget-friendly EV in favor of a robotaxi, because why make a car everyone would want to buy instead of something a few taxi companies will buy? On the plus side, Tesla doesn’t really pay taxes, which is pretty hard core.
