Tesla Undergoing Significant Staff Reductions as Per Musk's Aggressive Approach

Tesla's CEO, Elon Musk, Implementing Significant Employee Reductions

Tesla's Axe Keeps Falling: Musk Aims to Chop Another Bunch of Employees

In a shocking turn of events, just two weeks after Trimming down its workforce by at least 14,000 employees worldwide, Tesla's CEO Elon Musk is cooking up more job cuts—this time, targeting hundreds more staffers, including the main crew working on the Supercharger team and several top-tier executives.

Musk dropped the bombshell in an email sent to Tesla's top brass late Monday night (The Information broke the story). Musk's message was clear: get ready to tighten those belts, as he aims to go "absolutely hardcore" in shedding excess baggage. Starting at 10 a.m. on Tuesday, he plans to ask any executive who has more than three underlings who don't measure up to his golden standard of excellent, necessary, and trustworthy to kiss goodbye to their cushy positions.

The following morning, two executives will be departing Tesla: Rebecca Tinucci, who's been with the company for six years, overseeing the Supercharger division, and Daniel Ho, who's helmed the new products division for over a decade. Ho has a rich history with Tesla, previously serving as program manager for the Model S, Model 3, and Model Y.

The majority of Tinucci's 500-strong team will be hitting the bricks on Tuesday, but a few might find refuge on other teams. Tinucci's accomplishments include spearheading Tesla's electric vehicle charging business and persuading Western automakers to adopt the North American Charging Standard, which earned her a spot on Time magazine's 100 Climate list.

The Tesla stock took a nosedive of 2% in pre-market trading on Tuesday.

These latest job cuts come as a surprise but are not entirely out of the blue. Tesla announced earlier this month its plans to ax more than 10% of its 140,000-strong global workforce. However, Musk allegedly pushed for a more substantial trim—a 20% headcount reduction, equivalent to Tesla's sales decline between the fourth quarter of 2023 and the first quarter of 2024.

Ho and Tinucci join at least three other bigwigs who have either quit or are poised to hang up their hats later this year.

Drew Baglino, Tesla's senior vice president for energy engineering and powertrain, called it quits last month as the pink slips began making the rounds among Tesla employees. Baglino was one of the original electrical engineers working on the Roadster, Tesla's first-ever electric vehicle, and ranked among Tesla's four top executives. Just days after his departure, Baglino sold off about 1.1 million Tesla shares for a whopping $181.5 million.

Rohan Patel, Tesla's vice president of public policy and business development, and Martin Viecha, Tesla's head of investor relations, have also bid farewell to Tesla. Most of Patel's public policy team has been show the door, while Viecha has opted to stick around for a few more months to ensure a smooth transition.

The earlier layoffs claimed Anthony Thurston, Tesla's head of cathode materials and manufacturing, as well as Amir Mirshahi, who had been overseeing infrastructure at Tesla's gigafactory in Texas.

This update was originally published on Quartz.

Rohan Patel, Tesla's vice president of public policy and business development, has been a significant player in Tesla's interactions with policymakers and regulators, and his departure may impact Tesla's political influence and compliance.

The layoffs and departures of key executives such as Drew Baglino and Anthony Thurston could have an impact on Tesla's research and development efforts and future product lineup, particularly in the areas of energy and powertrain technology and cathode manufacturing.

Tesla's tightening of its belt may indicate a shift in strategy or a response to increased competition and economic conditions. The company may be looking to streamline its operations, cut costs, and focus on core priorities. However, it remains to be seen whether these moves will help Tesla reverse its recent sales decline and reclaim its market position.

The executive overseeing Tesla's Supercharger division, Rebecca Tinucci, is among the top-tier executives targeted for layoffs, along with Daniel Ho, who has helmed the new products division.
In his email, Elon Musk, Tesla's CEO, aims to eliminate any executive who has more than three underlings who don't meet his standards of excellence, necessity, and trustworthiness.
The technology-based company, Tesla, has made headlines for a series of layoffs, with multiple key executives, including Drew Baglino, Rohan Patel, and Martin Viecha, either quitting or preparing to depart.
The future product lineup and research and development efforts of Tesla might be affected by the layoffs and departures of executives like Drew Baglino and Anthony Thurston, particularly in the areas of energy and powertrain technology and cathode manufacturing.