The one thing he might be good at, though, is firing people.
There have been at least 14,000 employees who have been affected by Tesla’s decision to reduce its employment by 10 percent, which has just been in effect for two weeks. At this time, even more pink slips are on their way. According to The Information, the corporation has announced that it would be laying off hundreds of other employees in addition to letting go of two senior executives today.
The entire Supercharger team, including senior director Rebecca Tinucci and 500 staff members, will be experiencing layoffs as a result of these decisions. Along with his team, Daniel Ho, who was in charge of the new vehicles program, was also terminated from his position. Additionally, the public policy unit of Tesla, which in the past has been managed by former executive Rohan Patel, is being disbanded.
Elon Musk, the CEO of the company, sent out an email to all of the employees that appeared to be more of a threat than anything else. “Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction,” Musk concluded in his letter. “While some on exec staff are taking this seriously, most are not yet doing so.”
It’s possible that this is just the beginning. In addition, Musk stated that any employees working under executives who “do not obviously pass the excellent, necessary, and trustworthy test” would be terminated from their positions simultaneously. After everything is said and done, it is possible that Tesla’s workforce might be reduced by as much as twenty percent, according to a recent suggestion made by Bloomberg. There are more than 20,000 people working for this company.
The question is, how “hard core” is Musk when it comes to cutting costs? The proposal that he made for a compensation package that would reward him $55.8 billion of Tesla’s money was recently rejected by a judge. The judge referred to this amount as “an unfathomable sum” that was unfair to shareholders. On the other hand, Chancellor Kathaleen St. Jude McCormick referred to it as “the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude.” It seems to me that you have a soft core.
Despite the fact that Tesla’s stock price appears to be existing in a different world, this year is shaping up to be a pretty terrible one for the electrical company. A six-year low has been reached in terms of profit margins. A 55 percent decrease in profits was reported in the most recent earnings report of the corporation, which was a dismal performance. Despite its continued existence, the Cybertruck remains something of a deadly joke. Recently, the Autopilot software developed by Tesla was related to fourteen fatalities. According to reports, the company has also abandoned its low-cost electric vehicle (EV) in favor of a robotaxi. This is because the company wants to create a vehicle that everyone would want to buy rather than something that only a few taxi companies will acquire. A positive aspect is that Tesla does not actually pay taxes, which is a very hard core.