Tesla plans to lay off 10% of global workforce amid 'rapid' company growth

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C@LAg
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3:58p, 4/15/24
Tesla CEO Elon Musk said in an internal companywide email that the electric carmaker would be laying off 10% of its global workforce to reduce costs, according to multiple news outlets.

"There is nothing I hate more, but it must be done," Musk said of the layoffs in the memo, first reported by Electrek, an American news outlet that covers electric transportation. "This will enable us to be lean, innovative and hungry for the next growth phase cycle."

CNBC confirmed Electrek's report in an article on Monday, and Musk himself seemed to confirm the news Monday morning in a post on social media, which was made in response to news reports of the layoffs.

"About every 5 years, we need to reorganize and streamline the company for the next phase of growth," Musk said.

Musk said the company's "rapid growth" over the past few years has led to a "duplication of roles and job functions in certain areas."

It is unclear what teams within Tesla will be affected. CNBC reported that Tesla employed 140,473 workers worldwide at the end of 2023; 10% equates to about 14,000 employees.

this will likely be picked up by libs and their union lapdogs as additional fuel to attack Musk, but it very likely does deal with significant overhiring/redundancies AS WELL AS reflects changes in the market for EVs goods overall.
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GeorgiAg
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4:04p, 4/15/24
AG
Laying off 10% of your workforce for "growth?"

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C@LAg
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In reply to GeorgiAg • 4:07p, 4/15/24
GeorgiAg said:
Laying off 10% of your workforce for "growth?"
yes.

eliminating unneeded groups due to redundancies, changes in product mix, to reflect cancelled projects, to focus on new strategies, etc.

tech companies do this all the time./
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Hobbes01
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In reply to C@LAg • 4:09p, 4/15/24
AG
Hmm, wonder what percent this would be if the federal government used the same strategy!!
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C@LAg
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In reply to Hobbes01 • 4:10p, 4/15/24
Hobbes01 said:
Hmm, wonder what percent this would be if the federal government used the same strategy!!
govt see redundancies as a "feature" to govt. not a problem.

they only exist to grow govt.

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BoydCrowder13
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4:11p, 4/15/24
Doesn't Exxon cut 5-10% of their workforce annually?
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GeorgiAg
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In reply to C@LAg • 4:13p, 4/15/24
AG
C@LAg said:
GeorgiAg said:
Laying off 10% of your workforce for "growth?"
yes.

eliminating unneeded groups due to redundancies, changes in product mix, to reflect cancelled projects, to focus on new strategies, etc.

tech companies do this all the time./
I need to buy some stock. Maybe this will knock the price down a bit and I'll pick up some.
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VitruvianAg
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4:13p, 4/15/24
AG
He's replacing them with Optimus!

Duh!!!
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No Spin Ag
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In reply to BoydCrowder13 • 4:14p, 4/15/24
BoydCrowder13 said:
Doesn't Exxon cut 5-10% of their workforce annually?


Is that just Exxon, or do all oil companies do that?
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
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GeorgiAg
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4:16p, 4/15/24
AG
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Bubblez
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4:39p, 4/15/24
He could have simply said Tesla is getting rid of some of the low performing dead weight the company has unfortunately accumulated over the past few years, and they won't be missed one bit.
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C@LAg
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4:40p, 4/15/24
there was absolutely nothing wrong with what he said or how he said it.

people getting upset are just looking for a reason to be upset
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torrid
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4:42p, 4/15/24
AG
Getting rid of dead wood so he can hire better talent to help with growth.
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torrid
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In reply to No Spin Ag • 4:44p, 4/15/24
AG
No Spin Ag said:
BoydCrowder13 said:
Doesn't Exxon cut 5-10% of their workforce annually?


Is that just Exxon, or do all oil companies do that?
Any company worshipping at the altar of Neutron Jack and using stacked ranking, where performance reviews ae forced to a bell curve.
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Bobaloo
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4:59p, 4/15/24
I worked at Texas Instruments 30 years ago, and we had standard reductions in force. Every company that large can reduce head count of those not producing.
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aggiejayrod
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In reply to BoydCrowder13 • 5:07p, 4/15/24
AG
BoydCrowder13 said:
Doesn't Exxon cut 5-10% of their workforce annually?


Comes from the Jack Welsh management training from his GE days. Rack and stack all employees. Cut the worst 10%, promote the top 10%. Especially ineffective when you actually have an entire team of high performers but needs to cut a few because upper management says they can't possibly all be high performers.
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TexAgs91
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In reply to GeorgiAg • 5:55p, 4/15/24
AG
GeorgiAg said:
Laying off 10% of your workforce for "growth?"
Yes

Fight! Fight! Fight!
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Kraft Punk
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In reply to Bubblez • 5:59p, 4/15/24
Bubblez said:
He could have simply said Tesla is getting rid of some of the low performing dead weight the company has unfortunately accumulated over the past few years, and they won't be missed one bit.



But then people on your team would cry & demand they unionized so that everyone can loaf....


Elon is smarter than the people on your team
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Logos Stick
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In reply to BoydCrowder13 • 6:00p, 4/15/24
BoydCrowder13 said:
Doesn't Exxon cut 5-10% of their workforce annually?


Not sure, but I know GE used to under Welch.
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J. Walter Weatherman
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In reply to Bubblez • 6:03p, 4/15/24
Bubblez said:
He could have simply said Tesla is getting rid of some of the low performing dead weight the company has unfortunately accumulated over the past few years, and they won't be missed one bit.


Internally, you cut the bad performers. Externally, it's a "cost cutting layoff" so you can avoid any HR issues. It's exactly how you do these things. But I'm sure you know better.
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techno-ag
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6:04p, 4/15/24
AG
TexAggers have been noting Teslas falling fortunes for months. The EVangelists on here have been stridently insisting everything's fine.

Layoffs are not "fine."
I think that, to be very honest with you, I do believe that we should have rightly believed, but we certainly believe that certain issues are just settled.

- Kamala Harris

Vote for Trump.
He took a bullet for America.

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Brother Shamus
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6:23p, 4/15/24
Eh, cutting the fat is okay. I bet Tesla has some complacent folks that need to be cut.
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Ag with kids
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In reply to GeorgiAg • 8:26p, 4/15/24
AG
GeorgiAg said:
Laying off 10% of your workforce for "growth?"

In the traditional Big 3 automakers, the answer would be **** NO...

But, Tesla is not one of them. They operate like a tech company, not an automaker.

Not being unionized helps I guess...
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bmks270
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10:53p, 4/15/24
AG
I see a lot of linked in posts about the layoff: looks like it already happened, people posting about how great their experience was now looking for work.
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Texas Yarddog
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In reply to C@LAg • 11:05p, 4/15/24
AG
C@LAg said:
Hobbes01 said:
Hmm, wonder what percent this would be if the federal government used the same strategy!!
govt see redundancies as a "feature" to govt. not a problem.

they only exist to grow govt.



The Fed civilian "workforce" could be cut by 80% and still function and it would be closer to what the Founders had in mind.
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deddog
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In reply to aggiejayrod • 11:27p, 4/15/24
AG
aggiejayrod said:
BoydCrowder13 said:
Doesn't Exxon cut 5-10% of their workforce annually?


Comes from the Jack Welsh management training from his GE days. Rack and stack all employees. Cut the worst 10%, promote the top 10%. Especially ineffective when you actually have an entire team of high performers but needs to cut a few because upper management says they can't possibly all be high performers.
Pisses me off...Many companies have stopped this - especially in Tech
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deddog
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In reply to techno-ag • 11:29p, 4/15/24
AG
techno-ag said:
TexAggers have been noting Teslas falling fortunes for months. The EVangelists on here have been stridently insisting everything's fine.

Layoffs are not "fine."
Its a terrible economy, unless you work in government , defense, or a gov approved green energy company.
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Ag with kids
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In reply to aggiejayrod • 7:44a, 4/16/24
AG
aggiejayrod said:
BoydCrowder13 said:
Doesn't Exxon cut 5-10% of their workforce annually?


Comes from the Jack Welsh management training from his GE days. Rack and stack all employees. Cut the worst 10%, promote the top 10%. Especially ineffective when you actually have an entire team of high performers but needs to cut a few because upper management says they can't possibly all be high performers.
I've been through that a few times.

Mandated that EVERY department had to cut 10%.

So some areas with nothing but high performers lost a few high performers and some areas that were NOTHING but LOW performers also only lost a few.

Dumbest thing I ever saw.
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japantiger
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In reply to aggiejayrod • 9:41a, 4/16/24
S
aggiejayrod said:
BoydCrowder13 said:
Doesn't Exxon cut 5-10% of their workforce annually?


Comes from the Jack Welsh management training from his GE days. Rack and stack all employees. Cut the worst 10%, promote the top 10%. Especially ineffective when you actually have an entire team of high performers but needs to cut a few because upper management says they can't possibly all be high performers.
Uuuhhhmmm, a team of all high performers? Really?
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Logos Stick
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In reply to Ag with kids • 9:47a, 4/16/24
Ag with kids said:
aggiejayrod said:
BoydCrowder13 said:
Doesn't Exxon cut 5-10% of their workforce annually?


Comes from the Jack Welsh management training from his GE days. Rack and stack all employees. Cut the worst 10%, promote the top 10%. Especially ineffective when you actually have an entire team of high performers but needs to cut a few because upper management says they can't possibly all be high performers.
I've been through that a few times.

Mandated that EVERY department had to cut 10%.

So some areas with nothing but high performers lost a few high performers and some areas that were NOTHING but LOW performers also only lost a few.

Dumbest thing I ever saw.

Now do seniority based mandates. Way back, I watched one of my best friends, MS in Industrial Engineering, get canned because he was the newest in that particular group. He was outstanding. They kept a goofball low performer who had more time on the job who ended up quitting a few months later. Ridiculous.
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nai06
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9:52a, 4/16/24
AG
How much of tesla is the cybertruck team? 10%?

maybe he realized what a money hole that thing is and has decided to cut his losses
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Faustus
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12:35p, 4/16/24
Doubled employment in Austin last year to rival HEB as the city's biggest employer, which surprised me.

https://www.expressnews.com/business/article/tesla-doubles-texas-employment-elon-musk-led-ev-19379719.php

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No Spin Ag
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In reply to Faustus • 12:41p, 4/16/24
Faustus said:
Doubled employment in Austin last year to rival HEB as the city's biggest employer, which surprised me.

https://www.expressnews.com/business/article/tesla-doubles-texas-employment-elon-musk-led-ev-19379719.php



Two companies that couldn't have bluer employees. Of course it would be Austin.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
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Faustus
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2:01p, 4/16/24
SpaceX's Starbase is just outside of Brownsville, which is also pretty blue.
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LMCane
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In reply to C@LAg • 2:27p, 4/16/24
C@LAg said:
GeorgiAg said:
Laying off 10% of your workforce for "growth?"
yes.

eliminating unneeded groups due to redundancies, changes in product mix, to reflect cancelled projects, to focus on new strategies, etc.

tech companies do this all the time./
is Tesla a tech company - or a car company?
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