Tesla (TSLA) launches another round of layoffs

Three weeks ago, Tesla started a significant wave of layoffs. The automaker announced it was laying off about 10% of its workforce.

However, we reported prior to the announcement that the layoffs could be closer to 20% of the workforce once everything is said and done.

Sure enough, Tesla had another significant wave of layoffs last week.

Now, we hear of yet another round of layoffs at Tesla.

Several sources familiar with the matter told Electrek that workers across several departments, including software, service, and engineering, have received the dreaded "employment status" email between Friday and Sunday.

The layoffs were expected after CEO Elon Musk made an example of Rebecca Tinucci, Tesla's former head of charging, and her entire team by firing everyone last week. After the move, he emailed other executives and told them that they would also be let go if they don't let go higher percentages of their teams.

Musk and Tesla have given several reasons for the layoffs. Musk first told employees that it was due to Tesla's fast headcount growth over the last few years, resulting in hiring inefficiencies and role duplication.

However, he also told investors and employees more recently that it was about "restructuring for the next phase of growth".

The layoffs also come after Tesla had one of its worst financial performances in a while due to lower-than-expected vehicle deliveries.

Electrek's Take

I have heard from many service people getting let go since Friday, and several programmers and engineers yesterday.

It does look like another round of layoffs, the third in as many weeks.

I hope this ends soon for the sake of Tesla employees because it is a super stressful situation right now. Employees are always looking at their personal email for the dreaded email.

Several sources told me that some departments are so gutted that Tesla will likely soon realize that it will need to rehire many workers, which is something the automaker had to do after previous layoff rounds.

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