Tesla announced on the 15th a global workforce reduction of 14,000 employees, exceeding 10% of its total workforce.
Reportedly, the layoff process was swift: some employees found out they were being laid off only when their access cards failed before entering the office building; others, who had relocated their families to another state at Tesla's request, received termination notices just six months later; at the Nevada-based Gigafactory, workers were individually checked at the entrance to see if they had been laid off, causing some to wait in line for up to two hours before entering the work area.
The image depicts a Tesla parking lot.
The scope of Tesla's layoffs this time is not limited to North America, but also involves Europe and Asia. Multiple witnesses recounted the layoff process to Red Star News reporters.
According to those laid off, the process from the news of layoffs to completing the departure procedures was very short, and the compensation standards were generally satisfactory. After being "involuntarily resigned," some employees still view their experience at Tesla positively, but others are conflicted about why they were among those laid off.
Musk sent an internal email:
I hate layoffs, but it's necessary
According to reports, an internal Tesla email showed CEO Musk sent on the 15th. Musk wrote, "After years of development, we have large-scale production workshops around the world. In this rapid development process, we have found that some positions have overlapping responsibilities. In order to better prepare for the next stage, we need to re-examine various aspects of company operations, reduce costs, and increase productivity."
Tesla CEO Musk expresses hatred for layoffs
Musk has announced plans to cut more than 10% of the workforce globally. "I detest this decision immensely, but it's a necessary move to make us leaner, hungrier, and more efficient in facing the challenges ahead," Musk said. He wished departing employees success in their future endeavors and thanked them for their years of contribution.
Addressing the remaining staff, Musk conveyed, "Our company is at the forefront of challenging fields like artificial intelligence, autonomous driving, and clean energy. Your resilience and perseverance will make an indelible contribution to the company's rapid growth in the next phase."
Swift Layoffs
No prior notice was given
According to a female employee who was laid off, she also saw the internal email Musk sent on the 15th and asked her immediate supervisor, who didn't know the specific layoff list either. On the 16th, she was called into the office where a prepared resignation agreement was on the table, and the entire process took only about 5 minutes to complete.
Another male employee who was laid off after the probationary period expressed regret at not being able to continue working at Tesla. He stated that Tesla is suitable for individuals with a strong sense of self-drive, as employees deal with a large amount of information daily.
Tesla employees enter the work area
Some laid-off employees expressed satisfaction with their work environment and company policies during their less than two years of employment. They came to Tesla to enhance their skills and abilities.
Tesla's stock price continues to fall
Departure of key executives sends negative signals
Following Musk's announcement of layoffs, Tesla's stock plummeted 5.6% in the U.S. stock market on the 15th and continued to decline by 2.7% on the 16th. Since the beginning of 2024, Tesla's stock has cumulatively fallen by 36.76%, with a market capitalization loss exceeding $286 billion. Once a member of the "trillion-dollar club," Tesla's market value is now less than $500 billion.
The image depicts a Tesla store in North America.
Amid Tesla's high-profile "massive layoffs," two executives have voluntarily resigned from the company, both of whom were previously listed on Tesla's official website as core management members. Drew Baglino, Senior Vice President of Powertrain and Energy Engineering, who had been with Tesla for 18 years and was considered Musk's right-hand man, frequently accompanied Musk to earnings calls and important events.
Michael Schulman, Chief Investment Officer of Running Point Capital, believes that the departure of these two core executives indicates serious obstacles to Tesla's primary growth strategy, which is a bigger negative signal for the company than announcing layoffs.
Further Reading:
Tesla China employees share experiences of being laid off; some work for 1 month and get paid for 4 months.
On April 15th, Musk stated in a letter to employees that Tesla would be laying off 10% of its global workforce, affecting approximately 15,000 employees.
According to insiders who spoke to Phoenix Tech, the proportion of layoffs in Tesla China far exceeds the 10% mentioned by Musk, with the sales department being hit hardest. Insiders indicate that some departments will be optimized by 30% to 40%, while individual departments will see a 50% reduction. Other departments are generally around 20%. A Tesla employee who was laid off internally stated that the compensation amount is "N+3" (years of service + 3 months' salary), and the layoff process has been completed.
Recently, many Tesla employees have been sharing their experiences of being laid off on social media. Insiders claim that almost every store has employees who have been laid off, and Tesla's layoff and compensation process is fast and highly efficient.
The dismissed internal staff stated that the compensation amounts are all "N+3".
Some netizens claimed that they were discussing a mountain climbing trip in the morning, but were laid off after returning to the office at noon. One comment mentioned, "Being compensated with around 100,000 RMB is pretty good; take a break for a while." The individual responded, "But the company benefits are very good. After working for so many years, it's difficult not to feel attached, especially when the incident happens suddenly."
Netizens reported that they were discussing hiking in the morning, but when they returned to the office at noon, they were laid off. Many employees who had just started their jobs were also laid off.
Some quit just 7 days after starting their new job.
One person left a big company before March 22nd, joined Tesla for training on March 25th, and was notified of departure on April 16th: giving up higher pay at another big company, they thought they were stepping into new energy, but it turned out...
Someone was laid off less than a month after starting their job.
In the comments, someone comforted them saying, "Working for a month and getting four months' pay, better than at a big company."
A netizen comforts someone who received four months' salary for just one month of work.
Someone started a job on March 31st and left on April 16th, saying it felt like a dream.
Internet users say being laid off feels like a dream.
Overall, laid-off employees seem to be quite satisfied with Tesla's compensation package, with many bidding farewell with a heavy heart.
Many people bid farewell with a heavy heart, reluctant to part ways. Some netizens have shared their rollercoaster-like journey on the day they were laid off, experiencing a whirlwind of emotions but still unable to shake off the feeling of attachment.
A Netizen Shares Their Thoughts on the Day They Were Laid Off
Contributed by: Li Xi_NN2587
