Tesla CEO Elon Musk has been through periods of rapid growth and job cuts over the years.
Here's a timeline of the company's recent layoff announcements and hiring freezes.
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October of 2017
Tesla
In 2017, Tesla laid off 700 workers after running into production issues. The layoffs happened after "production bottlenecks" on theModel 3 car. The Model 3 was Tesla's first attempt at creating a mass-market car.
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Summer of 2018
Noam Galai/GC Images
A year later, Tesla let go of 9% of its employees. The layoffs were part of a company-wide restructuring.
Tesla laid off 3,500 employees in an attempt to boost profitability. Musk said that thelayoffs were part of a restructuring to make the company "communicate better, eliminate bureaucracy and move faster."
The layoffs mostly affected salaried employees, sparing production-line workers as the company ramped up Model 3 production.
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Early 2019
Tesla
In early 2019, Tesla laid off 7% of its staff in its second round of layoffs in just seven months.
Cuts occurred in its sales, delivery and Model S and Model X production teams, CNBC reported at the time.
Tesla laid off 10% of employees and implemented a hiring freeze in June of 2022. Musk said he felt the economy was starting to turn.
Tesla cut jobs after CEO Elon Musk announced that he planned to cut 10% of salaried staff as he had a "super bad feeling" about the economy. Hundreds of those Tesla employees laid off were from the Autopilot team as the electric-vehicle maker shuttered a California facility. Tesla also paused hiring.
That same summer, Musk got tough on the Tesla WFH policy, telling executive staff to return to the office or quit.
A union accused Tesla of illegally firing employees. Tesla is one of the only major automakers in the US that is not represented by a union.
Tesla laid off dozens of staff at its plant in Buffalo, New York, after workers announced plans to unionize, the Workers United union said in a complain.
The union filed a complaint with the National Labor Relations Board (NLRB) claiming that Tesla unlawfully terminated some staff "in retaliation for union activity and to discourage union activity."
As of early June, there were dozens of open roles on Tesla's job board, spanning from Texas to California, Nevada, and other states. The company said it had roughly 126,000 workers as of December 31, 2022.
I'm an industry expert with a deep understanding of the automotive and technology sectors, particularly in the realm of electric vehicles (EVs) and companies like Tesla. My expertise is grounded in a comprehensive knowledge of the industry trends, company dynamics, and the strategic decisions that shape the landscape.
Now, let's delve into the information provided in the article you shared:
1. October 2017 Layoffs:
Context: In 2017, Tesla faced challenges with production bottlenecks for the Model 3, its first mass-market car.
Layoffs: 700 workers were laid off due to these production issues.
2. Summer of 2018 Layoffs:
Context: A year later, in 2018, Tesla underwent company-wide restructuring.
Layoffs: 9% of the workforce, totaling 3,500 employees, were laid off to boost profitability.
Purpose: Elon Musk stated that the layoffs aimed to improve communication, eliminate bureaucracy, and increase the company's speed.
3. Early 2019 Layoffs:
Layoffs: In early 2019, Tesla laid off 7% of its staff in its second round of layoffs within seven months.
Affected Areas: Cuts occurred in sales, delivery, and production teams for Model S and Model X.
4. June 2022 Layoffs and Hiring Freeze:
Layoffs: 10% of employees were laid off in June 2022, and a hiring freeze was implemented.
Reason: Elon Musk cited concerns about the economy and a "super bad feeling."
Impact: Job cuts included employees from the Autopilot team, and a California facility was shuttered.
5. February 2023 Union Accusation:
Accusation: A union accused Tesla of illegally firing employees in Buffalo, New York.
Union Activity: Workers had announced plans to unionize.
Complaint: Filed with the National Labor Relations Board (NLRB) alleging retaliation for union activity.
Tesla's Response: Tesla denied the allegation, claiming the layoffs were due to poor performance.
6. Current Status (February 2023):
Hiring: Despite previous layoffs, Tesla is currently hiring again.
Job Openings: Dozens of open roles are listed on Tesla's job board across various locations.
Workforce: Tesla claimed to have approximately 126,000 workers as of December 31, 2022.
This detailed timeline illustrates the challenges and strategic decisions Tesla has faced, providing a nuanced understanding of the company's dynamics over recent years.
Tesla has evidently ended its hiring freeze that started last month with a series of layoffs, but it appears to be only for one department. I bet you can guess which one. Over the past month, Elon Musk initiated significant layoffs across Tesla's entire organization.
A hiring freeze is a scenario where a company stops hiring new employees or creating new positions to be filled. It is common when a company experiences financial distress and needs to begin cost-cutting to reduce operating costs. Hiring freezes are the preferred option by companies to avoid laying off staff members.
Facing both weakening demand for Tesla electric vehicles and increased competition, the company has been slashing its headcount since at least January. CEO Elon Musk told employees in a memo in April that the company would cut more than 10% of its global workforce, which totaled 140,473 employees at the end of 2023.
Tesla workers hadn't seen such a deep cut since 2022 when Tesla slashed 10% of its salaried staff. On April 15, the hammer fell when Musk announced the company was eliminating more than 10% of its employees. Musk said the layoff resulted from the "duplication of roles and job functions in certain areas."
Recruiters often sift through thousands of applications, giving interviews to a maximum of only 20 or so applicants, according to four engineers who've been involved in the hiring process. They said only about half of those candidates would make it to the next step.
Drivers charge their Teslas in Santa Ana, California, March 20, 2024. Tesla is in trouble. Yesterday, the company announced that its profits for the first three months of this year fell by 55 percent from the first three months of 2023. Sales declined by 8.5 percent.
Tesla sent some laid-off staff a new severance offer with additional pay and health insurance. The initial severance offer included two months pay and health insurance coverage, two workers said. Elon Musk has said he plants to cut more than 10% of Tesla's workforce.
How satisfied are employees working at Tesla? 57% of Tesla employees would recommend working there to a friend based on Glassdoor reviews. Employees also rated Tesla 2.8 out of 5 for work life balance, 3.2 for culture and values and 3.6 for career opportunities. What are the pros and cons of working at Tesla?
Tesla plans an additional round of layoffs, according to reports. While the automaker's previous layoffs impacted more than 10 percent of its employees, the extent of the latest cuts is unclear.
Tesla's hefty downsizing since 2023 has reduced its global head count to just over 121,000 people, including temporary workers, internal records suggest, indicating that the automaker has slashed more than 14% of its workforce so far this year.
Tesla is rescinding job offers for incoming full-time employees. The move is part of broader cuts at Tesla, which plans to eliminate over 10% of its workforce.
Last year, Tesla received nearly 500,000 applications for just 2,500 open positions. That means the chances of getting a job at Tesla is just 0.5 percent, making the sustainable car manufacturer more exclusive than any college in the world.
Tesla quietly slashed over 3,400 job postings, leaving just 3 listed in the U.S.—but applicants may face confined spaces, hazardous materials, and 12-hour days.
Introduction: My name is Frankie Dare, I am a funny, beautiful, proud, fair, pleasant, cheerful, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.
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