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Musk sacking senior Tesla staff to further reduce costs

Musk sacking senior Tesla staff to further reduce costs

Elon Musk is firing more people at his electric car company Tesla, after executing layoffs this month that affected 10 per cent of its global workforce, a media report said on Tuesday.

Musk last week said it is time to “reorganise” Tesla as the electric car company registered $1.13 billion in net profit in the January-March period this year, down 55 per cent from $2.51 billion a year earlier.

According to a report in The Information, Musk is “thinning his senior management team and laying off hundreds more employees”.

Rebecca Tinucci, senior director of Tesla’s Supercharger group and Daniel Ho, head of new products, are leaving the company, according to an email sent by Musk to senior executives.

"We need to be absolutely hardcore about headcount and cost reduction,” Musk wrote.

Musk, who just visited China, or Tesla were yet to officially comment on the report.

Tesla laid off over 10 per cent of its workforce this month, in a move necessary for the “next phase of growth”.

Musk had told analysts that the EV adoption rate globally is under pressure and a lot of other auto manufacturers are “pulling back on EVs and pursuing plug-in hybrids instead.”

"We believe this is not the right strategy. And electric vehicles will ultimately dominate the market,” Musk noted.


Tags: Tesla Elon Musk Lay Offs