Tesla has downsized by at least 14% this year after Elon Musk said layoffs would exceed 10%
Tesla’s hefty downsizing in 2023 has reduced its global headcount to just over 121,000 people, including temps, internal records suggest, indicating that the automaker has slashed more than 14% of its workforce so far this year.
Tesla’s hefty downsizing in 2023 has reduced its global headcount to just over 121,000 people, including temps, internal records suggest, indicating that the automaker has slashed more than 14% of its workforce so far this year.
The latest figure is not from precise payroll data, but from the number of people who are on Tesla’s “everybody” email distribution list as of June 17, a tally viewed by CNBC.
Tesla CEO Elon Musk sent an email to “everybody” that day. He told employees that, “Over the next few weeks, Tesla will be doing a comprehensive review to provide stock options grants for exceptional performance.” He added that option grants will also be awarded to “anyone who does something outstanding for the company.” Tesla’s plan to reinstitute options grants, after previously pausing performance-based equity awards, was reported first by Reuters.
Tesla’s layoffs announcement landed in April, when Musk sent out a companywide email telling employees that the automaker would be cutting more than 10% of its staff. Layoffs at the point were already underway.
Bloomberg reported that Musk was aiming for a 20% staff cut. Musk indicated that the number could be even bigger. On the company’s first-quarter earnings call later in April, he said Tesla had reached an inefficiency level of 25% to 30% after “a long period of prosperity” that began in 2019.
Rating: 5