- Elon Musk says Tesla needs to do a “complete overhaul of its organization” from time to time.
- According to Musk, this would take his company “to the next level.”
- Musk’s remarks come after a series of mass layoffs at Tesla, where the company cut more than 10% of staff.
Tesla CEO Elon Musk said the electric vehicle giant needs to do a “complete overhaul of its organization to get to the next level” every “half decade or so.”
“That said, our leadership tenure is unusually long, well in excess of 10 years at Tesla,” Musk wrote in a post on X, formerly Twitter.
Musk’s remarks follow reports of mass layoffs at Tesla. The company is cutting “more than 10%” of its workforce, according to an internal memo obtained by BI. Tesla employs more than 140,000 people worldwide.
In his memo to staff, Musk said Tesla’s “rapid growth” had resulted in “duplication of roles and functions in certain areas.”
“There’s nothing I hate more, but it needs to be done. It will keep us lean, innovative, and hungry for the next growth cycle,” Musk wrote.
This week’s layoffs also coincide with the departure of two longtime Tesla executives.
Drew Baglino, senior vice president of powertrain and electrical engineering, and Rohan Patel, vice president of public policy and business development, announced Monday that they are leaving the company. Baglino and Patel joined Tesla in 2006 and 2016, respectively.
Tesla’s layoffs come at a difficult time for the company, which is grappling with declining sales and increased competition from Chinese automakers like BYD.
“Chinese automakers are the most competitive automakers in the world,” Musk told investors during Tesla’s earnings conference call in January.
“If no trade barriers are established, most of the world’s other automakers will be virtually demolished,” he continued.
Tesla representatives did not immediately respond to a BI request for comment sent outside of normal business hours.
businessinsider
