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Apr 18, 2024 05:57 PM IST
According to Musk, the recent developments have led to a duplication of roles in the company as Tesla had around 140,000 employees last year.
Amid global layoffs by Tesla, the CEO of the company, Elon Musk, believes that the company now requires a complete organizational overhaul to strategize properly for its future growth and development.
Elon Musk, CEO of SpaceX and Tesla and owner of X.(Reuters) According to Musk, the recent developments have led to a duplication of roles in the company as Tesla had around 140,000 employees last year. Hence, the layoffs have also been done to revamp the organizational structure and cut costs to deal with the decreasing sales of Tesla.
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"There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle," Musk wrote in his memo to the staff.
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Tesla is an American electric vehicle (EV) and clean energy company that was founded in 2003. It brought about a revolution in the car and electric vehicle industry and proved to be a game-changer. However, in the recent past, it has been dealing with a number of problems.
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The multinational giant is facing a decline in sales, pressure from Wall Street about the future strategy and growth of the company, the global lay-offs done recently, and increased competition in the automobile world.
Also, Senior vice president of powertrain and energy engineering, Drew Baglino, who joined the company in 2006, and vice president of public policy and business development, Rohan Patel, who joined the company in 2016, announced their resignations from the company after the layoffs were declared.
Everyone is speculating about the CEO's next steps since he intends to streamline and improve the effectiveness of the company's systems.
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