The dismissal of nearly 10% of Tesla employees is accompanied by some (apparently) voluntary departures. Even if Drew Baglino and Rohan Patel are much less known to the public, their departure from the manufacturer is not neutral.
Tesla has been sailing in particularly rough seas for several weeks. After a mixed first quarter for sales of the American brand's cars, several announcements have come to further overwhelm the company and its boss Elon Musk. In addition to the recent episode concerning the suspension of the Model 2 project to focus on robotaxi, Tesla has just announced on April 15 a wave of layoffs in its workforce. The email received by employees was distributed by Electrek a few hours after sending.
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The boss of Tesla thus informed that more than 10% of the workforce worldwide are affected, i.e. at least 14,000 employees, without specifying the exact number. These layoffs concern production plants, sales/after-sales service and R&D. It's a real spring cleaning in certain departments. Some executives who have been developing projects for years have been thanked. Others decide to slam the door and voluntarily leave the company. This could well complicate the way Tesla operates in the coming months.
Layoffs worldwide, including at the Berlin factory?
In the email addressed to his staff, Elon Musk indicates that “ rapid growth has led to duplication of roles and functions in some areas » and that it is necessary for Tesla to “ reduce costs and increase productivity. »
According to data collected by Reuters On April 16, Tesla in the United States reportedly carried out a wave of layoffs in dealerships. All profiles are concerned: from reception staff to sales staff as well as technicians. The company's headquarters is not left out, many engineers have been let go, particularly in areas that no longer have the support of Elon Musk, i.e. everything that does not revolve around AI and autonomous driving.
In China, the Shanghai production plant seems little affected by layoffs at the moment, but the sales teams have been reduced by at least 10%.
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According to the German media Handelsblatt, the Berlin Gigafactory could lose up to 3,000 employees, but the German branch of Tesla denies these claims. At this time, no employees have been notified of possible dismissal, as German laws are much more protective. However, management still indicated to Reuters : “ We will continue the implementation of the measure for the Gigafactory Berlin-Brandenburg with all labor law requirements. » Temporary contract workers could be the first victims of this downsizing in Germany.
The email signed by Elon Musk nevertheless specifies: “ There's nothing I hate more than that, but it has to be done. This will allow us to lean, innovate and be ready for the next phase of growth. » Employees who have gone through this wave of departures are, however, warned: “ For those who remain, I would like to thank you in advance for the difficult task ahead of them. »
Notable departures for Drew Baglino and Rohan Patel
In the crush of this announcement, two personalities from the Tesla organizational chart also decided to leave the company. Even though they are less known to the general public, they had key positions in the company.
Drew Baglino had been in the Tesla workforce for 18 years, which means he was one of the company's veterans on the engineering side. He served as Tesla's vice president of powertrain engineering and energy. Among the projects carried out by Drew Baglino in recent years was the manufacturing of 4680 cells and cathodes. The cumulative delays in the development of this new generation of battery and its industrialization have often annoyed Elon Musk.
The battery division of the Texas factory seems to have been particularly targeted by the dismissal of staff. One of the managers of this branch (Anthony Thurston), who reported to Drew Baglino for years, was also fired, according to Electrek. This could explain Drew Baglino's sudden decision to leave after he indicated on that he had no specific plans for the future. There is no doubt that he will not remain unemployed for long, given the knowledge he has accumulated during his 18-year career at Tesla.
Rohan Patel joined Tesla eight years ago. Recently, he had taken over the role of public relations manager. We notably followed his statements during the sabotage of the Berlin factory. He also had a role in the commercial development of the brand, but also that of intermediary between Tesla and government institutions, to somewhat temper Elon Musk's statements. For the moment, Tesla's only voice will be that of Elon Musk, which is of no consequence for the company.
There is no doubt that the next financial results conference for the 1st quarter will be lively in question. It is to be held on Tuesday April 23.