Saturday, May 25, 2024

Elon Musk’s Tesla sacked 10% of staff: Report

Thanks for everything you’ve done for Tesla. Few have contributed as much as you

• April 15, 2024
ELON MUSK/TESLA LOGO
ELON MUSK/TESLA LOGO(WIKIPEDIA)

Billionaire business magnate Elon Musk has sacked 10 per cent of Tesla’s 140,000 global workforce amid dwindling revenue, high operational costs and a low demand for electric vehicles (EVs).

Mr Musk conveyed the dismissal in bulk emails late Sunday and noted that it was a difficult decision that “must be done,” according to Bloomberg, a British business paper that viewed the email.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Bloomberg cited Mr Musk as writing in the email.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 per cent globally,” the Tesla CEO added. “There is nothing I hate more, but it must be done.”

The dismissal, effective immediately, would result in the loss of jobs for at least 14,000 Tesla employees in different nations.

Already, Andrew Baglino —who until Sunday served as Tesla’s senior vice president for battery development — announced his termination on X, which got a  response from Mr Musk 

“I made the difficult decision to move on from Tesla after 18 years yesterday,” Mr Baglino said. “I will always have a warm spot for the people of Tesla and Tesla products in my heart and wish the team and company the best in the future.”

In response, Mr Musk wrote, “Thanks for everything you’ve done for Tesla. Few have contributed as much as you.”

But analysts said the large layoffs were “ominous” and hinted at a much deeper challenge than Tesla was letting on.

“It’s an ominous sign of some dark days ahead,” LA Times cited Dan Ives, Wedbush Securities’ managing director as saying.  “Streamlining is one thing, but the size of this cut is a concern for a company that’s still in growth mode.”

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Sport

Hansi Flick favourite to takeover Barcelona job following Xavi’s dismissal

He has been out of job since he was sacked as the manager of the German national team in 2023.

Rainstorm

States

Plateau lawmaker solicits support for rainstorm victims

Residential houses and a church were affected by the rainstorm.

President Bola Tinubu

Politics

Nigeria no longer printing money, deceiving itself under my watch: Tinubu

“Nigeria went through terrible labour pains, but we have seen the baby coming out alive,” the President concluded.

Nigerian policemen at a checkpoint

States

Imo CP condemns alleged corruption within Nigerian police

According to him, Nigerians are no longer satisfied with the overall conduct and character of policemen in the country.

Rivers Governor Siminalayi Fubara

Port Harcourt

Gov. Fubara flags off N6.7 billion Okania-Ogbogoro road project

The governor said it would be completed and inaugurated in the next five months.