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Tesla plans to lay off 14,000 workers worldwide.

Tesla plans to lay off 14,000 workers worldwide.

Tesla has announced a significant restructuring plan that will result in a 10% reduction in its global workforce, potentially affecting around 14,000 employees worldwide. The aim of this move is to streamline operations and cut costs amidst recent challenges faced by the company.

Notably, the layoffs will also affect high-level executives, including Drew Baglino, senior VP, who oversaw the powertrain and energy divisions for 18 years, among others. Rohan Patel, Tesla’s head of policy, will also depart. These changes coincide with broader turbulence within Tesla, including a slowdown in sales growth and missed delivery targets.

Following a recent decline in vehicle deliveries, Elon Musk, CEO of Tesla, conveyed in an internal memo, obtained by Electrek, the imperative to “streamline the company for the next phase of growth.” Despite expressing personal aversion to such actions, Musk emphasized the necessity of trimming roles to optimize efficiency.

Tesla’s rapid global expansion has led to role duplication, prompting this restructuring effort. Musk clarified on Twitter that such reorganizations occur approximately every five years to recalibrate for forthcoming growth cycles.

This latest initiative aims to refine Tesla’s operations as it gears up for the launch of its next-generation vehicles. As Tesla prepares for its Q2 earnings report on 23 April, this restructuring underscores efforts to enhance productivity and financial performance.

Concurrently, speculation swirls regarding Musk’s potential announcement of plans to invest in a new Tesla factory in India, which may be discussed during an upcoming meeting with PM Modi later this month.