Tesla loses top execs and lays off 10 percent of its workforce

A few weeks after reporting its first year-over-year decline in vehicle deliveries (excluding during Covid), Tesla is now preparing to lay off more than 10 percent of its global workforce. This equates to at least 14,000 of the 140,473 employees that Tesla reported in its latest annual earnings. It remains unclear which specific teams will be affected.

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CEO Elon Musk acknowledged the necessity of the layoffs in an internal company-wide email seen by Electrek, stating, “There is nothing I hate more, but it must be done.” Later, in a post on X, Musk explained that the company needs to “reorganize and streamline” every five years for the next phase of growth.

As part of the layoffs, Tesla’s senior vice president Drew Bagliano is also departing, according to Bloomberg reports (Baglino later confirmed the news on X). Bagliano, who has been with the company for over 18 years, was most recently in charge of Tesla’s energy and powertrain division. Additionally, Electrek noted that the Tesla badge has disappeared from the X account of Rohan Patel, the company’s head of policy.

Today’s layoff news follows a series of setbacks for Tesla. The company reported a miss in delivery estimates ahead of its quarterly earnings on April 23rd, as well as a predicted sales growth slowdown in January in preparation for the launch of its next-generation vehicles.

Tesla has also reportedly dropped plans to produce an affordable Model 2, which would have been priced around $25,000, and is instead focusing on a new robotaxi. This shift comes amid growing pressure from declining demand for EVs and the increasing competition from Chinese manufacturers offering more affordable electric vehicles. Last year, Tesla lost its position as the world’s leading electric vehicle manufacturer to China’s BYD, which produced 3.02 million EVs compared to Tesla’s 1.81 million.