Tesla is cutting 10% of its workforce

REDUCE COSTS – Declining sales and an increasingly brutal price war will be the basis of power staff reductions that Tesla it works worldwide. The American company is actually continuing to lay off more than 10% of its employees, as highlighted in an internal letter reported by the agency. Reuters, where CEO Musk writes to all employees: “As we prepare the company for our next phase of growth, it is very important to examine every aspect to reduce costs and increase productivity.” To do that “we did a thorough audit of the organization and made a difficult decision reduce ours organic than 10% international”. The news agency also viewed an email that informed the three American workers of their immediate expulsion.

THE MANAGERS ALSO DISMISSED – cuts not only affect employees, but also some senior executives. Among the first to leave the company were Drew Baglino, head of battery development, and Rohan Patel, vice president of public policy. Some analysts have assessed the resignation of the management as an important sign of the brand’s difficulties. The layoffs follow news that came out about ten days ago, according to Tesla has been deleted its affordable car program (WHO know more). yesterday Actions of the brand is closed decrease by 5.6% and, more generally, this year they have decreased by almost 33%, achieving worse results than those of traditional car manufacturers such as Toyota or GM, which instead grew by 45 and 20% respectively.

CHINESE COMPETITION – Tesla recently announced that it is selling cars worldwide first quarter of 2024 fell for the first time in nearly four years, despite the price cuts. While the American company has been slow to renew its models, thereby weakening its appeal to customers, rivals from China have instead launched new and cheaper cars. The results were already visible in the last quarter of 2023, when BYD beat Tesla to be the world’s largest manufacturer of electric vehicles. For this reason, in the fourth quarter of last year, Tesla recorded a profit margin of 17.6%, the lowest in the last four years.