Elon Musk, CEO of Tesla, has stated that his company undergoes a “complete organizational overhaul” every few years in order to stay innovative and competitive. This comes after over 10% of Tesla’s staff were let go in recent mass layoffs. Musk noted that the executive team at Tesla has remained stable for over a decade, despite this.
Tesla’s recent layoffs were prompted by the company’s rapid growth, which led to redundancy in certain roles. Musk expressed his dislike for the layoffs but insisted that they were necessary for the company to remain efficient and continue growing.
The departure of two long-time executives, Drew Baglino and Rohan Patel, coincided with the layoffs at Tesla. Both executives had been with the company since 2006 and 2016 respectively. Tesla is currently facing challenges as it contends with declining sales and increased competition from Chinese automakers like BYD. Musk has acknowledged the competitive nature of Chinese car companies and the potential impact on Tesla’s global market share.
Representatives for Tesla have not yet responded to requests for comment regarding the recent developments at the company.