Elon Musk details Tesla’s strategy for layoffs as executives depart

Tesla is gearing up for a new phase of expansion within its automotive business, recognizing the importance of updating its product portfolio. Despite recently refreshing the Model 3 and delivering the Cybertruck, the company is preparing to introduce a next-generation vehicle platform to fuel its future growth. This new platform, scheduled to debut in the second half of 2025, will support the Robotaxi and a rumored $25,000 vehicle. However, this transition is not without its challenges.

The company announced the departure of Senior Vice President of Powertrain Drew Baglino and Vice President of Public Policy and Business Development Rohan Patel. As part of this restructuring, Tesla also made the difficult decision to reduce its global workforce by more than 10%. The layoffs, affecting not only lower-level associates but also seasoned executives like Baglino and Patel, reflect an effort to streamline the organization and prepare for the next growth phase. The exact reasons for Baglino and Patel’s departure remain unclear, as both individuals have expressed a desire to take time off and spend time with their families.

This restructuring resulted in the elimination of somewhere between 10 and 20 percent of Tesla’s global workforce.

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