This year, Tesla has reduced its workforce by at least 14% following Elon Musk's announcement that layoffs would exceed 10%.

This year, Tesla has reduced its workforce by at least 14% following Elon Musk's announcement that layoffs would exceed 10%.
This year, Tesla has reduced its workforce by at least 14% following Elon Musk's announcement that layoffs would exceed 10%.
  • According to CNBC's report on Tesla's internal records, the company has approximately 121,000 employees, including temporary staff.
  • According to a filing, Tesla had 140,473 employees worldwide as of Dec. 31, including both hourly and salaried workers.
  • In April, Elon Musk, CEO of Tesla, announced that the company would be reducing its global workforce by more than 10%.

The automaker has reduced its global headcount to just over 121,000 people, including temps, due to a hefty downsizing in 2023, indicating that it has slashed more than 14% of its workforce so far this year.

The number of people on Tesla's "everybody" email distribution list as of June 17 is the latest figure, viewed by CNBC.

On that day, Elon Musk, CEO of Tesla, sent an email to everyone. He announced that the company would be conducting a comprehensive review to grant stock options to exceptional performers. Additionally, he stated that option grants would be awarded to anyone who made outstanding contributions to the company. Reuters first reported Tesla's plan to reinstate options grants after pausing performance-based equity awards.

In April, Tesla announced layoffs by sending out a companywide email from Musk, stating that the automaker would be cutting more than 10% of its staff. The layoffs had already begun.

According to Bloomberg, Musk was considering a staff reduction of up to 20%. However, he stated that the number could be higher. During Tesla's first-quarter earnings call in April, Musk revealed that the company had reached an inefficiency level of 25% to 30% after a period of prosperity that began in 2019.

""We've made some corrections and now it's time to reorganize the company for the next phase of growth," Musk said on the call."

Tesla's worldwide employee headcount at the end of December 2023 was 140,473, which includes both salaried and hourly staffers. However, the "everybody" email list also includes temps, which means the actual headcount may be higher. Since the end of 2023, Tesla has reduced its overall headcount by at least 14%.

Tesla didn't immediately respond to a request for comment.

Tesla dismantled its Supercharging team, consisting of hundreds of employees, including its leader, Rebecca Tinucci. The company later hired some of those people back, according to posts on LinkedIn. In at least one instance, Musk's headcount reductions went too far.

Tesla's sales have decreased by 9% in the first quarter, which is the largest decline since 2012. This coincides with the company's aging lineup of electric vehicles, increased competition in China, brand deterioration due to Musk's "antics" and "political rants," and a recent survey that attributed some of the decline to Musk's behavior.

In the automotive sector, EV sales growth slowed down in 2023, following two years of rapid expansion. This decline was particularly pronounced for Tesla, whose Model Y was the best-selling car globally in that year.

An unnamed Tesla employee told CNBC that some factory workers are worried about potential layoffs in July based on the company's second-quarter results.

Tesla is set to release its fourth "Master Plan" and unveil the design for a "dedicated robotaxi" on August 8th. Additionally, a production and deliveries report for the second quarter is expected from Tesla during the first week of July.

On Friday, Tesla shares remained relatively stable at $181.71. Despite this, the stock has experienced a 27% decline in value this year, in contrast to the Nasdaq's 18% increase.

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