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HomeEconomyMusk's Tough Measures: Fresh Round of Layoffs Hit Tesla

Musk’s Tough Measures: Fresh Round of Layoffs Hit Tesla

Merely a fortnight after initiating layoffs affecting a minimum of 14,000 employees, Tesla is now reportedly undergoing further staff reductions, including senior executives and the majority of its Supercharging team. As per an email initially disclosed by The Information and subsequently by Electrek, the automaker’s senior director of EV charging, Rebecca Tinucci, is departing the company on Tuesday, along with most of her 500-person team.

Additionally, Tesla’s head of the new vehicles program, Daniel Ho, is departing along with his team. These layoffs compound the recent 10% reduction in the workforce, and Elon Musk’s email hints at the possibility of more cuts to come.

In a recent email addressed to executives, Musk emphasized his desire for Tesla to take a “absolutely hard core” approach to the layoffs. He mentioned that employees working under executives who fail to meet the standards of excellence, necessity, and trustworthiness would also face termination.

While the exact extent of these new layoffs remains uncertain, Bloomberg had previously suggested that the ongoing reduction in Tesla’s workforce, which commenced earlier this month, might ultimately reach as high as 20 percent, equating to well over 20,000 employees.

Tinucci played a significant role in overseeing the expansion of Tesla’s Supercharger network during her tenure of six years, including initiatives to encourage other companies to adopt the North American Charging Standard (NACS) developed by Tesla. In Musk’s email, he assures that despite the layoffs, Tesla will continue building new Superchargers and completing those already in progress.

Among those affected by the recent layoffs is Daniel Ho, a veteran of ten years at Tesla, who held roles as director of vehicle programs and new product initiatives. Ho also served as program manager for the Model S, 3, and Y vehicles. Additionally, most of the public policy team, formerly led by Rohan Patel (who departed the company in the previous round of layoffs), will also be departing.

Tesla is facing a tumultuous year, with these recent job cuts adding to its challenges. The company’s stock has plummeted as profit margins hit a six-year low, driven by price reductions to counter rising competition and dwindling demand for EVs. Moreover, Tesla grapples with various reputational issues tarnishing its brand, including ongoing investigations into its Autopilot feature, a Cybertruck recall, and Elon Musk’s controversial conduct both online and in legal proceedings.

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