Elon Musk wants to make Tesla “slimmer” and thus reach “the next level”. Grzegorz Wajda/SOPA Images/LightRocket via Getty Images
Elon Musk says Tesla needs a “complete organizational overhaul” on a regular basis.
That would allow his company to “reach the next level.”
Musk’s comments come after a round of mass layoffs at Tesla, in which more than 10 percent of employees were laid off.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Tesla CEO Elon Musk says the electric car giant needs to undertake a “complete organizational overhaul” about every decade to reach the next level.
“Aside from that, our executives’ tenure at Tesla is unusually high, with well over ten years,” Musk wrote in one Contribution on X, formerly Twitter.
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Musk’s comments come after reports of mass layoffs at Tesla. According to an internal memo obtained by Business Insider, the company is cutting “more than ten percent” of its workforce. Tesla employs worldwide more than 140,000 employees.
In his note to employees, Musk said Tesla’s “rapid growth” had led to a “doubling of roles and job functions in certain areas.”
“There is nothing I hate more, but I have to do it. This will allow us to be lean, innovative and hungry for the next growth phase cycle,” Musk wrote.
This week’s layoffs also coincide with the departure of two longtime Tesla executives.
Drew Baglino is senior vice president of powertrain and electrical engineering. Rohan Patel, on the other hand, serves as Vice President of Public Policy and Business Development. Both announced on Monday that they would be leaving the company. Baglino and Patel joined Tesla in 2006 and 2016.
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Tesla is worried about its Chinese competitor BYD
The layoffs at Tesla come at a difficult time for the company. It is struggling with declining sales and increased competition from Chinese automakers like BYD.
“The Chinese car companies are the most competitive car companies in the world,” Musk told investors at Tesla’s annual press conference in January.
“If trade barriers don’t arise, they will pretty much demolish most of the other car companies in the world,” he continued.
Tesla representatives did not immediately respond to a request for comment from Business Insider outside regular business hours.
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