Elon Musk Cuts Senior Tesla Staff Amid New Layoffs
In response to falling sales and a significant drop in net profit, Tesla CEO Elon Musk is enacting a substantial reduction in the company's workforce, including the dismissal of senior management. Among those laid off are Rebecca Tinucci, head of Tesla's Supercharger business, and Daniel Ho, head of new products. Musk's strategy involves not only the removal of these executives but also the dismissal of all employees working in their respective divisions, amounting to around 500 employees in the Supercharging group alone.
The layoffs extend beyond the aforementioned departments, as the company's public policy team is also being dissolved. This decision follows a recent wave of job cuts that reduced Tesla's global workforce by over 10%. These measures come as Tesla reported a 55% decrease in net profit for the January-March quarter compared to the previous year, with earnings falling from $2.51 billion to a lower figure.
Musk has communicated the necessity of reorganizing Tesla to face the challenges presented by the slower-than-expected global adoption of electric vehicles (EVs) and the competitive pressure from other automakers pivoting towards plug-in hybrids. These changes are occurring amidst a backdrop of investor reactions that range from concern to cautious support for the company's efforts to streamline operations and innovate within the rapidly evolving automotive industry.
