The chief executive officer cited duplication of roles and the need to reduce cost as reasons for the cuts in the memo seen by Bloomberg News. If the cuts apply companywide, the dismissal would amount to more than 14,000 employees.Tesla reported disastrous vehicle deliveries early this month, missing expectations by a wide margin and posting its first quarterly decline in four years.
Tesla shares have slumped 31% this year, ranking among the worst performers in the S&P 500 Index. The stock slipped as much as 1.2% before the start of regular trading.Tesla staff have been fearing potential job cuts since early this year, when managers were asked to affirm whether each of their employees’ positions is critical. Some salaried employees also were told late last year that the company wasn’t going to be offering merit-based equity awards as part of annual performance reviews.
“We just have to chase down every penny possible,” Chief Financial Officer Vaibhav Taneja said during Tesla’s most recent earnings call on Jan. 24. “We have a strong team which is hyper-focused on this.”The EV slowdown Tesla has felt of late has been widespread. China’s BYD Co. delivered just 300,114 battery-electric vehicles in the first quarter, down 43% from the final three months of last year, when it briefly pulled ahead as the world’s top EV seller.
Tesla Inc. boosted headcount 86% last year to 22,777 in the fast-growing region in Texas, where the carmaker churns out Model Y SUVs and angular Cybertrucks. It surpassed grocery-store chain H-E-B, according to a new annual compliance report Tesla filed with Travis County’s economic development program.