Elon Musk wanted Tesla to reduce its workforce by one-fifth, Bloomberg reported
Musk wanted the layoffs to match the drop in quarterly vehicle deliveries.
Tesla delivered 386,810 cars in the first quarter of 2024, a 20.1% drop from the last quarter.
Tesla CEO Elon Musk at one point wanted the EV giant to trim its workforce by 20%, Bloomberg reported on Sunday, citing a person familiar with the matter.
The reduction, Musk reasoned, should match the reduction in vehicle deliveries between the fourth quarter of 2023 and the first quarter of 2024, per Bloomberg.
Earlier this month, Tesla said it delivered 386,810 cars in the first quarter of 2024, a 20.1% drop from the previous quarter. The delivery drop was the company’s lowest quarterly performance since 2022.
Musk had announced a round of mass layoffs at Tesla last week. In his memo to staff, the billionaire said the company is slashing “more than 10%” of its head count.
“Over the years, we have grown rapidly with multiple factories scaling around the globe,” Musk wrote. “With this rapid growth, there has been duplication of roles and job functions in certain areas.”
Before the layoffs, Tesla said it employed more than 140,000 people globally.
Besides declining sales, the company has grappled with increased competition from Chinese car companies like BYD. Back in January, Musk had told investors in an earnings call that Chinese automakers “are the most competitive car companies in the world.”
Tesla’s growing troubles have raised questions about Musk’s ability to run multiple businesses simultaneously. Besides leading Tesla, Musk also has his hands full with other ventures like SpaceX, The Boring Company, Neuralink, X, and xAI.
But, Musk has maintained that the layoffs were necessary to keep Tesla “lean innovative, and hungry for the next growth phase cycle,” per his memo to staff last week.
“There is nothing I hate more, but it must be done,” he wrote.
Representatives for Tesla didn’t immediately respond to a request for comment from BI sent outside regular business hours.
News
Breaking: Warner Music Group Terminates $100 Million Deal with Garth Brooks, “He Produces Crap Music”
In a move that sent shockwaves through the music industry, Warner Music Group announced the termination of its $100 million partnership with country music superstar Garth Brooks. The decision, marked by the candid statement “He gets booed a lot,” has…
“Take Your Wokeness Somewhere Else”: Roseanne Barr Throws Tom Hanks Out Of Her New Show
In a recent, groundbreaking development that has reverberated across the entertainment industry, esteemed comedian and actress Roseanne Barr has made a bold and unexpected move by dismissing the acclaimed actor Tom Hanks from her latest television project. This decision was…
Chiefs’ Coach Andy Reid Draws Line, Fires 3 Top Players For Anthem Kneeling: “Stand for the Game, Not Against the Anthem”
In a move that reverberated through the sports world and beyond, Kansas City Chiefs’ Head Coach Andy Reid made headlines last week when he dismissed three of his top players from the team for kneeling during the national anthem. This…
Breaking: Elon Musk Urges Boycott of Tyson Foods, Says “I’ll Never Purchase from Tyson Foods Again!”
In a bold move that has sent shockwaves through the food industry, Tesla CEO Elon Musk has called for a boycott of Tyson Foods, declaring that he will never purchase products from the company again. Musk’s outspoken stance comes amidst…
Breaking: Girls’ Swim Team Declines To Compete Against Biological Male, Says “It’s Not Right”
In a sporting world fraught with debates surrounding fairness, inclusion, and competition integrity, a recent decision by a girls’ swimming team to refuse to compete against a biological male has reignited discussions about the complexities of gender identity in sports….
Breaking: Candace Owens Throws Joy Behar Out Of “The View’ Set On Her First Day
In a surprising turn of events that sent shockwaves through the talk show landscape, conservative commentator Candace Owens made a bold statement on her first day as a co-host on “The View.” The fiery clash occurred as Owens, known for…
End of content
No more pages to load