Elon Musk lays off Tesla senior executives in fresh job cuts and plans to lay off hundreds more employees, Report

Tesla CEO Elon Musk has fired two senior executives and announced plans for significant layoffs. The decision, reportedly influenced by declining sales and dissatisfaction with the pace of previous job cuts, signals a shift in strategy for the electric vehicle giant, The Information reported

According to the report, Rebecca Tinucci, senior director of Tesla’s Supercharger business, and Daniel Ho, head of the new vehicles program, are set to depart from their roles. The layoffs are expected to extend beyond Tinucci and Ho’s teams, affecting approximately 500 employees within the Supercharger group and others associated with Ho’s division.

This announcement comes hot on the heels of Tesla securing the green light in China for the rollout of its full self-driving technology (FSD), a pivotal development in the world’s largest automotive market.

Additionally, Tesla’s public policy team, led by former executive Rohan Patel, is slated for dissolution as part of the restructuring efforts.

“Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction,” Musk wrote in the email, the Information said, according to Reuters. “While some on exec staff are taking this seriously, most are not yet doing so.”

In an email to senior managers, Musk emphasized the necessity for stringent cost reduction measures, indicating a need for a more disciplined approach to staffing. This move follows earlier departures within the company, including Patel and battery development chief Drew Baglino, amidst a larger layoff of over 10% of Tesla’s workforce.

The timing of these changes coincides with Tesla’s recent approval in China to introduce a full self-driving (FSD) system, a significant milestone in the company’s efforts to expand its presence in the world’s largest automotive market. Despite challenges such as declining sales and heightened competition, Musk continues to pursue strategic opportunities, as evidenced by his recent visit to Beijing to advance Tesla’s driver-assistance package in the midst of an EV price war.

While Tesla has not yet responded to requests for comment, these developments underscore the company’s ongoing efforts to navigate a rapidly evolving automotive landscape under Musk’s leadership.