Elon Musk is streamlining Tesla’s senior management team and announcing additional Tesla layoffs in 2024, citing dissatisfaction with decreasing sales and the sluggish pace of previous job reductions, as per The Information’s report on Tuesday.
The CEO’s email to senior executives revealed the departure of Rebecca Tinucci, the senior director of Tesla’s Supercharger business, and Daniel Ho, the head of new products. The report indicates that both executives will depart on Tuesday morning.
Tesla Layoffs 2024 and Policy Changes
As reported by The Information, Tesla has let go of Rebecca Tinucci, who was in charge of the company’s Supercharger business, and Daniel Ho, the head of new products. Elon Musk is making big changes at Tesla, including laying off hundreds of employees who work for executives Rebecca Tinucci and Daniel Ho. This includes about 500 people in the Supercharger group. The report didn’t mention how many employees worked for Ho.
Additionally, Tesla’s public policy team, led by former executive Rohan Patel, is being dissolved.
In an email, Musk stressed the importance of cutting costs and reducing the number of employees. He said that while some executives are taking this seriously, others are not. Tesla, which had over 140,000 employees globally by the end of 2023, has not yet commented on these recent developments.
Elon Musk’s Message and Recent Changes at Tesla
Elon Musk is sending a strong message about the need to cut costs and reduce the number of employees at Tesla. He mentioned that while some executives are taking this seriously, others are not.
Daniel Ho, who joined Tesla in 2013 and played a key role in developing models like the Model S, 3, and Y, was put in charge of all new vehicles. Rebecca Tinucci, who joined in 2018, was a senior product manager.
Two other senior leaders, Rohan Patel and Drew Baglino, recently announced their departures. Earlier this month, Tesla also laid off more than 10 per cent of its workforce. Tesla, which had over 140,000 employees globally by the end of 2023, has not yet responded to Reuters’ requests for comment.
Tesla’s Challenges: Falling Sales, Market Competition, and CEO’s Actions
As reported last week, Tesla is grappling with falling sales and an intensifying price war, leading to its quarterly revenue falling for the first time since 2020.
Despite these challenges, CEO Elon Musk made progress towards rolling out Tesla’s advanced driver-assistance package in China, the epicentre of the EV price war, during a surprise visit to Beijing on Sunday.
This visit came just over a week after Musk scrapped a planned trip to India, where Tesla has long sought to start operations, citing “very heavy Tesla obligations.” So, amidst declining sales and market competition, Musk’s actions highlight the company’s efforts to navigate these challenges while focusing on key markets like China.
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