'We will begin processing your separation': Read Tesla's chilling email as layoffs continue
‘We will begin processing your separation’: Read Tesla’s chilling email as layoffs continue
Tesla, the electric car giant, is grappling with a prolonged bout of layoffs, now stretching into its fourth week, as more employees take to social media platforms like LinkedIn to share news of their departure from the company.
Reports from both Electrek and Business Insider indicate that the latest round of layoffs is affecting various departments within Tesla, including software, services, and engineering. Numerous employees revealed they had received termination notices over the weekend and into Monday.
This latest wave of layoffs follows the initial cuts that commenced last month, when Tesla announced plans to reduce approximately 10 percent of its global workforce, comprising an estimated 140,000 employees. Notable figures affected in the earlier phase included Rebecca Tinucci, Tesla’s head of EV charging, and Daniel Ho, the head of the new vehicles program, along with their respective teams.
Read the chilling email that was shared by a recently laid-off employee to The Verge:
“I am reaching out to let you know that after a careful review of your permanent work restrictions and your role, it was determined that there was no reasonable accommodation that would enable you to perform the essential functions of your position in your role. The next step in the interactive process is the Alternative Job Search (AJS process), which consists of reviewing Tesla’s internal and external job board to identify potential positions. This is to inform you that we have not identified any openings for which you appear qualified. Given recent changes in the business, we also do not currently anticipate any such openings in the near term. As such, we are advising that we intend to conclude the AJS process at this time. As we have not identified an alternative available position, we will begin processing your separation from employment with Tesla, effective May 3rd, 2024.”
Elon Musk, CEO of Tesla, justified the need for these restructuring efforts, asserting that the company requires periodic reorganisation every five years. In internal communications, Musk stressed the necessity of making decisive cuts and indicated that employees working under executives failing to meet performance standards would face termination.
Behind the scenes, Musk reportedly expressed a desire to slash at least 20 percent of the workforce, citing a corresponding decline in quarterly vehicle deliveries. This desire comes amid a challenging financial landscape for Tesla, with sales dwindling and profits plummeting by 55 percent year-on-year.
The company finds itself confronting intensified competition in key markets like the US and China, coupled with a broader slowdown in global demand for electric vehicles (EVs). Despite these challenges, Musk has sought to pivot Tesla’s narrative away from its vehicle business towards positioning the company as a frontrunner in autonomous vehicles. He has teased the impending unveiling of a fully autonomous robotaxi later this year as part of this strategic shift.
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