Tesla Layoffs Affect Top Performers & Slash Some Departments, Sources Claim

Earlier this week, Tesla made a terrible announcement to its employees that was a result of poor financial performance. The management declared a reduction of 20% in departments, including stand-out employees. As the prices in the electric vehicle market declined, Tesla’s profit margins witnessed a terrible shrinkage. To its utter dismay, the strategy of reducing prices to stimulate sales has left Tesla in a tight spot.

In the horrendous announcement, Tesla laid off 14,000 employees, which makes up more than 10% of the company’s workforce. As the company gears up for its next growth phase, CEO Elon Musk aims to reduce costs and increase productivity through restructuring.

According to the soirees, many of the talented players on the team have been laid off. As Elon Musk aims to develop fully autonomous vehicles, the recent layoffs seem like a major coincidence with this decision. Recently, the company gave up on budget-friendly electric vehicles priced at $25,000. Instead, it focused on the robotaxi that’s due to make its debut earlier in August.

Many notable figures bid goodbye to Tesla in lieu of ongoing layoffs and major changes in the company. Rohan Patel, the vice president of public policy and business development, and Drew Baglino, vice president of powertrain and energy, parted ways with Tesla. Baglino spent 18 years with Tesla, handling power drives and new battery projects. Whereas Patel has an eight-year association with Tesla, he regarded these years as filled with emotions and gratitude in a recent social media post. Musk thanked him for his services in response.
The CEO also deemed it necessary to prepare the company for the upcoming growth phase; for this purpose, restructuring was inevitable.

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