Tesla has cut at the least 14% of its workforce this 12 months, internal figures show

Tesla's Massive job cuts since 2023 have reduced the group's global workforce to simply over 121,000 jobs, including temporary staff, internal records show. The automaker has thus cut greater than 14% of its workforce to this point this 12 months.

The latest figure isn’t based on precise salary data, but on the number of individuals on Tesla's email distribution list for everybody as of June 17, a count obtained by CNBC.

Tesla CEO Elon Musk sent an email to “everyone” that day, telling employees, “Over the next few weeks, Tesla will conduct a comprehensive review to grant stock options for exceptional performance.” He added that options can even be awarded to “anyone who does something exceptional for the company.” Tesla's plan to reinstate options after previously suspending performance-based stock awards was first reported by Reuters.

Tesla's layoff announcement got here in April, when Musk sent a company-wide email informing employees that the automaker would cut greater than 10% of its workforce. By then, layoffs were already underway.

Bloomberg reported that Musk was targeting a 20% workforce reduction. Musk hinted that the number might be even higher. On the corporate's first-quarter earnings call in late April, he said Tesla had reached a 25% to 30% inefficiency level after “a long period of prosperity” that began in 2019.

“We've made some corrections over time,” Musk said in the decision. “But it's time to reorganize the company for the next phase of growth.”

In a submission For the fourth quarter, Tesla reported that its global headcount was 140,473 at the tip of December, a figure that features salaried and hourly staff. The Everyone email list also includes temporary staff. At around 121,000, that means Tesla has reduced its total workforce by at the least 14% for the reason that end of 2023.

Tesla didn’t immediately reply to a request for comment.

In at the least one case, Musk's downsizing went too far. Tesla disbanded its Supercharging team, which consisted of lots of of employees, including its leader, Rebecca Tinucci. The company later rehired a few of those people, based on posts on LinkedIn.

The wider cuts coincide with a decline in sales at Tesla as the corporate faces an ageing range of electrical vehicles and increasing competition in China, in addition to a deterioration of the brand that has current survey This is partly as a result of Musk's “antics” and “political tirades.” For the primary quarter, Tesla reported a 9% decline in annual revenue, the most important drop since 2012.

Across the auto industry, growth in electric vehicle sales slowed this 12 months after two years of rapid growth. The decline was particularly sharp at Tesla, whose Model Y was the world's best-selling automobile in 2023.

A Tesla worker, who asked to not be identified to debate sensitive internal matters, told CNBC that some factory staff feared there might be more layoffs in July, depending on second-quarter results.

Tesla is predicted to release a second-quarter production and delivery report in the primary week of July.

Musk has promised investors that the corporate will soon release a brand new “master plan,” its fourth, and that Tesla will unveil its design for a “special robotaxi” on August 8.

Tesla shares were little modified at $181.71 on Friday. The stock has fallen 27 percent this 12 months, while the Nasdaq has risen 18 percent.

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