Tesla has disbanded its recently established marketing team as part of broad company layoffs, signaling a move away from conventional advertising efforts initiated by CEO Elon Musk less than a year ago.
According to unnamed sources speaking to Bloomberg, the decision resulted in the elimination of the U.S. “growth content” team, comprising roughly 40 members, under the supervision of senior manager Alex Ingram. Both Ingram and Jorge Milburn, the leader of the global team, were among those dismissed. Despite these cuts, Tesla maintains a limited marketing presence in Europe, as noted by one of the sources.
Further layoffs have affected Tesla’s design studio and employees based in Hawthorne, California, claim sources.
Responding to Bloomberg’s coverage on X, Musk criticized the marketing team’s efforts, stating, “The ads were far too generic – could’ve been any car.”
This move marks a departure from Tesla’s brief foray into advertising, a significant shift from its longstanding avoidance of traditional media promotion. The company, known for its robust brand built predominantly on word-of-mouth, had begun to explore advertising following Musk’s previous endorsement of a modest ad trial. The growth team, spearheaded by Ingram, was established approximately four months prior to the layoffs.
The context of these layoffs includes growing investor calls for Tesla to augment its marketing efforts amid slowing global EV sales and increasing competition.
Who wants to see a Tesla Super Bowl ad next year? We need at least ONE unreal ad (like Apple’s 1984 SB ad) https://t.co/KhAvvR9OAB
— TeslaNorth.com (@RealTeslaNorth) April 22, 2024
These layoffs are part of Tesla’s most extensive job cuts to date, impacting over 10% of its global workforce, as Musk announced last week. Reports suggest Musk aims for a 20% cut, potentially eliminating over 20,000 positions. It seems Musk is showing more hands-on efforts at Tesla, as he has apparently entered “wartime” mode.
Tesla is down 3% today, currently trading at $142 per share, after reaching 52-week lows today.