Syed Imran Haider 
According to internal records, Tesla has been on a downsizing spree this year, which has seen its global headcount decline to 121,000 people.
This indicates that the electric automaker has already cut its workforce by 14% so far this year. The figure has not been obtained from accurate payroll data.
Email distribution
Instead, it was obtained from the email distribution list of Tesla as of June 17th. On that particular day, Elon Musk had sent an email.
He had informed employees that the company would conduct a comprehensive review in the next few weeks.
This was aimed at assessing performance of employees, with stock option grants provided to those who are exceptional.
He also stated that any employee doing something outstanding for the company would also receive option grants.
Previously, Tesla had hit pause on giving equity awards based on performance. However, the company has now reinstated the option grants.
The layoff announcement had come in April when a companywide email had been sent. Musk had informed employees in said email that they would lay off 10% of its staff.
At that point, the company had already begun layoffs.
The layoffs
Reports had indicated that Musk was planning on cutting the workforce by 20%. The CEO had indicated that the number could rise.
In April, during the first-quarter earnings call of the company, he said that the company had become inefficient after enjoying prosperity since 2019.
Musk had said back then that they had made some corrections, but some reorganization was required for the next period of growth.
In a fourth quarter filing, Tesla had disclosed that the global employee headcount of the company at the end of December was 140,473.
This includes both hourly and salaried staffers. The email list, on the other hand, also includes temps.
The performance
The headcount reductions had reached an extreme in at least one situation. The electric car manufacturer fired its entire Supercharging team.
This included the head Rebecca Tinucci as well as hundreds of other employees. LinkedIn posts later revealed that some of the staff had been hired again.
The broader cuts come at a time when Tesla has seen its sales slide. A recent survey shows that there are several factors behind the decline.
First off, competition in China has surged and the company’s lineup of electric vehicles is also ageing. In addition, the brand is also deteriorating due to Musk’s antics and rants.
Annual revenue of the company recorded a 9% drop in the first quarter of 2024, which is the biggest drop since 2012.
The auto industry in general has also seen growth in EV sales slow down this year after expanding rapidly for two years.
Tesla saw the biggest decline after its Model Y had become the top-selling car globally last year. A Tesla employee spoke on the condition of anonymity and said that workers were concerned about more layoffs.
The employee said that it would depend on the results of the second quarter. Musk has promised to announce a ‘Master Plan’ and reveal the design of a ‘dedicated robotaxi’ in August.
