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Tesla Layoffs Continue: Supercharger Team Completely Dissolved

ByHuey Yee Ong

May 7, 2024
Tesla Layoffs Continue: Supercharger Team Completely Dissolved

Tesla Layoffs Continue: Supercharger Team Completely Dissolved

Tesla has embarked on another round of layoffs, marking a continuous trend of workforce reduction that now extends into its fourth week.

According to recent reports by Business Insider and Electrek, the precise number of Tesla employees laid off in the most recent actions remains unclear, although reports confirm that at least seven workers from the software, services, and engineering departments were let go.

The impact of these layoffs was personally shared by affected individuals across various social platforms, including LinkedIn, where one former employee detailed receiving a termination email, which was a common notification method for those dismissed.

Tesla Faces Financial Downturn

This ongoing reduction follows a dire financial report for Tesla. The company’s first quarterly report of the year indicated:

  • A nine percent drop in earnings.
  • Sales and profits plummeting by approximately 50 percent compared to the previous year.

This financial downturn significantly missed the forecasts set by analysts and experts, signaling deeper troubles within the electric vehicle giant.

In addition to internal cost-cutting measures, Tesla also faced significant product challenges. Last month, a major recall was issued for the newly released Cybertruck after a severe safety issue was discovered. Customers reported that the acceleration pedal could become stuck, posing a risk of unintended acceleration.

Unlike most Tesla recalls, which are typically rectified through software updates, this particular problem requires a physical intervention. This recall affects all 3,878 Cybertrucks that had been delivered, necessitating a temporary halt in both production and deliveries of the model.

Current Status of Tesla’s 2024 Layoffs

The layoffs began in mid-April when Tesla announced plans to reduce its workforce by 10 percent of its 140,000 employees to address its ongoing issues. However, the cuts escalated quickly, with reports emerging that Musk aimed to reduce the workforce by as much as 20 percent.

Just last week, Tesla executed another round of layoffs, this time impacting an entire team. Approximately 500 employees within Tesla’s “Supercharger” charging network division were affected by the workforce reduction. This drastic measure is part of Musk’s broader strategy to significantly cut costs and manage the company’s dwindling financial health.

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Featured Image courtesy of Smith Collection/Gado via Getty Images

Huey Yee Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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