Musk reiterated the need for the company to make significant layoffs and cost cuts in an email Monday evening, according to a report from The Information.
In the email, Musk announced the departure of two executives from the company: Rebecca Tinucci, senior director of the company’s Supercharger group, and Daniel Ho, head of new products, according to the report.
All staff reporting to management would also be reduced, although a small number of workers would be reassigned, the report said. The dissolution of the Tinucci-led Supercharger group would result in around 500 layoffs, the report said. Musk also said in the email that he would get rid of the public policy team whose director left the company on April 15, according to The Information.
“I hope these actions make it clear that we must be absolutely uncompromising on reducing headcount and costs,” Musk wrote, according to the email seen by The Information. “Even though some in management are taking this seriously, most are not yet.”
Musk also said that starting at 10 a.m. Tuesday, he would call for the resignation of any executive “who retains more than three people who clearly do not pass the excellent, necessary, and trustworthy test,” according to the report.
Tesla did not immediately respond to a request for comment before publication.
This isn’t the first time Elon Musk has sent a threatening email to his employees or talked about the importance of a “hardcore” culture. Musk previously made a similar decision after taking over Twitter, telling employees to commit to an “extremely hard” work schedule – or be fired with three months of severance pay.
The latest cuts at Tesla come weeks after Musk announced layoffs at Tesla that would affect more than 10% of its workforce. The automaker began notifying affected staff on April 14 in another email after midnight, and further reductions followed later in the week. The job cuts at Tesla come as Tesla struggles to cope with slowing demand for electric vehicles.
Hours after the announcement informing employees of the layoffs, workers received notice of layoffs via email, although some discovered they had been affected when they showed up for work and were escorted afterward. failed analysis of their badge.
Tesla last week reported an 8.7% year-over-year decline in revenue for the first quarter of its corporate earnings, although its gross margin exceeded expectations. It is earnings per share However, consensus forecasts were missed and its free cash flow was negative $2.5 billion in the quarter, a 674% year-over-year decline, amid billion-dollar investment in AI infrastructure.
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