X Chief Technology Officer Elon Musk speaks onstage during the “Exploring New Frontiers of Innovation: A Conversation with Elon Musk and Mark Read” session at the Lumiere Theatre on the third day of the Cannes Lions International Festival of Creativity 2024 on June 19, 2024 in Cannes, France.
Richard Bode | Wireimage | Getty Images
Tesla’s The company’s global employee count, including temporary workers, has fallen to just over 121,000 due to major job cuts from 2023 onwards, according to internal records, which show the company has cut more than 14% of its workforce so far this year.
The latest figure doesn’t come from precise salary data, but from a count of the number of people on Tesla’s “everyone” email distribution list viewed by CNBC as of June 17.
Tesla CEO Elon Musk sent an “everyone” email that day. He told employees that “in the coming weeks, Tesla will conduct a comprehensive review of stock option grants for outstanding performance.” He added that option grants will also be awarded to “those who have done something great for the company.” Tesla’s plan to resume option grants after suspending performance-based stock compensation was first reported here: Reuters.
Tesla’s layoffs were announced in April, when Musk sent a company-wide email informing employees that the company was cutting more than 10% of its workforce, though cuts had already begun at that point.
Bloomberg report Musk said he was looking to cut workforce by 20%, a figure he suggested could be even higher. During the company’s first-quarter earnings call in late April, he said Tesla had reached inefficiency levels of 25% to 30% after a “long boom period” that began in 2019.
“We’ve made some adjustments, but now is the time to reposition the company for our next phase of growth,” Musk said on a conference call.
in Filing During the fourth quarter, Tesla said it had 140,473 employees worldwide as of the end of December. The number combines full-time and hourly employees; the “everyone” email list includes temporary workers. The roughly 121,000 figure suggests Tesla has reduced its overall workforce by at least 14% since the end of 2023.
Tesla did not immediately respond to a request for comment.
In at least one instance, Musk’s cuts went too far: Tesla disbanded its supercharging team of several hundred employees, including its leader, Rebecca Tinucci, though the company later rehired some of them, according to a LinkedIn post.
The cuts come at a time when Tesla is facing declining sales as the company faces an aging lineup of electric vehicles, growing competition in China and a weakening brand. Recent Research Tesla, blamed in part on Musk’s “erratic behavior” and “political rants,” saw annual sales fall 9% in the first quarter, its biggest drop since 2012.
Across the auto industry, EV sales growth has slowed this year after two years of rapid expansion, with the decline especially steep for Tesla’s Model Y, which was set to be the world’s best-selling vehicle in 2023.
A Tesla employee, who asked not to be identified discussing a sensitive internal matter, told CNBC that some factory workers are concerned that further layoffs could come in July depending on second-quarter results.
Tesla is scheduled to release its second-quarter production and delivery report in the first week of July.
Musk promised investors that the company will soon unveil a new “Master Plan,” its fourth, and also promised to unveil blueprints for a “dedicated robotaxi” on August 8.
Tesla shares were little changed at $181.71 on Friday. The stock is down 27% this year, while the Nasdaq is up 18%.
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