Massive Layoffs at Tesla: Supercharger Division and More Affected

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Key Takeaways

  • EV maker Tesla has now entered its fourth week of job cuts, impacting several departments.
  • Tesla commenced action to axe around 14,000 positions last month but has already exceeded that figure.
  • CEO Elon Musk has commented on the streamlining process, which is due every five years.

Tesla has continued with further staff cuts as the axe falls at the EV giant for a fourth consecutive week.

Workers in several departments, including software, service, and engineering, have been impacted, with some taking to LinkedIn to confirm that their time at Elon Musk’s company has come to an end.

Staff received “employment status” emails between May 3 and 5, informing them they were part of the latest quota to be deemed surplus to requirements after Tesla initiated plans last month to shed around 10% of its 140,000 workforce.

However, before this latest development on job losses, as reported by Electrek, the extent of the layoffs could impact closer to 20% of the workforce headcount.

Last week, CEO Musk fired Rebecca Tinucci,  senior director of the Supercharger business.

Tesla’s strategic charging programs lead William Jameson broke the news on the demise of the 500-strong Supercharger team via his X with the following post:

Senior executive staff in other departments are said to have been warned that their positions will be under scrutiny if they don’t assist with losing staff numbers as part of a new direction Tesla wants to follow.

 

Last month, Musk intimated on his own X account how he sees company reorganization working in response to commentary on the first round of job losses. He added the company needed to be “absolutely hardcore” about the cuts and that staff working under executives who “don’t pass the excellent, necessary and trustworthy test” would also be out of a job.

The backdrop to the falling headcount at Tesla is the slide of EV sales for the company and the industry overall on a global scale. Specifically, they are facing tougher competition in the US and China.

Just last week, Musk made an unannounced visit to Beijing, culminating in a significant agreement with Baidu, which paved the way for Tesla’s full self-driving software in China.

The Tesla was hosted in the Chinese capital by Premier Li Quang. They are said to have discussed the implementation of FSD software and to negotiate for permission to transfer data abroad.