A recently leaked email from Elon Musk indicates that Tesla is planning to reduce its global workforce by over 10%. The email, which was shared by industry insiders in China, explains that the decision is a result of the company’s rapid growth leading to duplication of roles and functions in certain areas.
Musk stated that the initiative aims to make the company lean and prepared for further growth, acknowledging the difficulty of the decision but emphasizing its necessity. Musk expressed gratitude to departing employees for their contributions and acknowledged the challenges that remaining employees will face.
He emphasized the importance of their role in developing groundbreaking technologies in auto, energy, and artificial intelligence, highlighting the company’s focus on the next phase of growth. It’s worth noting that Tesla has historically conducted regular performance reviews, with the possibility of layoffs based on the results.
The company explained that employees receive performance ratings every six months and that failing to meet expectations could result in dismissal. In conclusion, while news of Tesla’s workforce reduction may be met with concern, it’s important to recognize the company’s rationale and history of performance-based reviews.
This approach aims to ensure the company’s competitiveness and efficiency as it continues to pursue innovation and growth.