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Tesla has carried out substantial companywide layoffs, including dropping its newly formed marketing team, a stark contrast to Elon Musk-approved advertising push in 2023.
According to sources familiar with the matter, the job cuts have affected the company's "growth content" team, comprised of approximately 40 employees in the U.S.
This move comes amid the car giant spending an estimated $200,000 on X ads, which accounts for the company's broader "commercial, consulting, and support agreements."
New paid advertisement from Tesla:
— Sawyer Merritt (@SawyerMerritt) April 10, 2024
“No thinking required. Model Y automatically calculates your charging needs and guides you to Supercharger locations along your route.
Starting at $37,490 after Federal Tax Incentive.” pic.twitter.com/7nKmRMy2Oy
Tesla ads have also recently been spotted on various social media platforms, including Google, YouTube, and even Meta's Facebook and Instagram.
Previously, the company received pressure from investors to boost its marketing efforts amid a slow global electric vehicle (EV) market bogged by intense competition.
Musk noted last year that he would "try a little advertising and see how it goes," but Tesla's latest job cuts might signify a reversal of his decisions.
Tesla's Global Workforce Reduction
According to Bloomberg, this latest round of layoffs may surpass 10% of Tesla's global workforce, potentially affecting over 14,000 jobs.
So far, layoffs are being rolled out in the following locations:
- A design studio located in Hawthorne, California
- A factory in Sparks, Nevada
- A gigafactory in Brandenburg, Germany
Employees in Tesla branches in Georgia and Texas have also reported being laid off.
"I think they over-hired because they were expecting to sell more cars," Deitrich Dickson, an employee who previously worked on the Model 3 production line, told The Independent.
Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year.
— Elon Musk (@elonmusk) April 20, 2024
Musk has also postponed his scheduled trip to India and his meeting with Prime Minister Narendra Mod in light of the recent happenings in Tesla.
The company's shares have dropped by over 40% since 2023.
Despite these recent struggles, it seems that Musk is optimistic that his company will eventually triumph over these challenges.
Accurate
— Elon Musk (@elonmusk) April 23, 2024
Amid the news, Tesla is also facing a lawsuit from a former employee alleging that the company violated labor laws by abruptly laying off workers without prior notice.
The complaint, filed in a California state court, asserts that Tesla "acted intentionally and with deliberate indifference and conscious disregard to the rights of its employees," notably ignoring the 60-day warning under California law.
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