After Tesla announced a 10% global layoff on Monday, its market value has fallen below $500 billion. This layoff also involves the Chinese market. Interface News learned that Tesla's layoffs in China cover multiple departments, some of which have already been laid off, and sales personnel are in the "hardest hit area".
A Tesla salesperson told Interface News that the majority of the layoffs were new employees who had worked for less than six months. "This group of people will be compensated at a rate of '0.5N+3'. As Tesla's base salary is relatively high, the compensation received is approximately 40000 to 50000 yuan."
On April 16th, Tesla CEO Musk announced on social media that Tesla is streamlining its sales and delivery system, which has become "complex and inefficient.".
On that day, there were reports in the Chinese market that Tesla had been communicating with sales stores about layoffs, with compensation amounts of "N+3", covering almost all stores.
Another Tesla employee who was laid off stated that on the afternoon of April 16th, the internal employees received resignation notices and completed the procedures, with compensation amounts of "N+3". The proportion of layoffs in their department was 20%, and the layoff work has been completed.
Musk issued an internal email to all employees on Monday, announcing global layoffs of over 10%. He stated in the email that the reason for this layoff is that Tesla's rapid growth has led to the duplication of roles and job functions in certain areas.
"There's nothing that I hate more than layoffs, but it's necessary to do so, which will enable us to lean, innovate, and strive towards the next growth cycle."
This layoff is Tesla's largest scale of layoffs since 2017. Previously, the company had several layoffs, with the lowest proportion being 2% and the highest not exceeding 10%. According to data, as of the end of 2023, Tesla had a total of 140500 employees worldwide, which also means that over 14000 employees will be affected by this layoff.
Another reason directly related to layoffs is that Tesla did not meet its expected performance in the first quarter. In the first quarter of 2024, Tesla's delivery volume was 386800 vehicles, a year-on-year decrease of over 8%, far below the previous institutional forecast of around 430000 vehicles. This is also the first quarterly year-on-year decline in Tesla's delivery volume in nearly four years.
It is worth noting that after Tesla announced its layoffs, two core executives who reported directly to Musk also resigned one after another.
Among them, Drew Baglino, Senior Vice President of Powertrain and Energy Engineering at Tesla, is Musk's core deputy. He has previously accompanied Musk to earnings calls and important press conferences and has been working at Tesla for 18 years. The other person is Rohan Patel, Vice President of Public Policy and Business Development at Tesla.