Tesla Cuts Over 10% of Global Workforce, Top Executives Depart

Tesla has announced plans to reduce its global workforce by more than 10%, as revealed in a memo obtained by Electrek. The decision comes as part of Tesla’s efforts to prepare for its next phase of growth, amidst rapid expansion and the resultant duplication of roles across its global factories.

According to the memo, the company has undertaken a comprehensive review of its organizational structure, leading to the difficult decision of headcount reduction. “With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” says the memo written by CEO Elon Musk, emphasizing the necessity of this move to streamline operations and foster innovation.

The memo expressed deep gratitude towards the departing employees for their contributions and dedication over the years. “There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle,” it highlighted, underscoring the strategic rationale behind the layoffs.

For the employees who will remain with the company, the memo conveyed thanks in advance for their continued dedication and hard work. Tesla’s ambitious agenda includes developing groundbreaking technologies in the automotive sector, energy, and artificial intelligence.

“As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there,” Musk concluded, signaling a call to action for the remaining workforce to drive Tesla towards its future goals.

Some top executives departing include Senior VP of Powertrain and Energy Drew Baglino (an 18-year veteran) and Rohan Patel, Tesla’s Policy and business development executive that has been communicating news directly to owners on X, especially lately about FSD subscriptions.


These are definitely some shocking departures, but Tesla still has some very important executives hanging around. If anything, Tesla is known for being lean and running its operations like a startup.

“About every 5 years, we need to reorganize and streamline the company for the next phase of growth,” commented Musk on the departures.

This announce comes ahead of Tesla’s Q1 earnings call, slated for Tuesday, April 23. Shares of Tesla are down 2.4% on the news.