Tesla shares continued to fall 3.72% in morning trading on Tuesday after a 5.6% decline on Monday. The tech giant issued a letter to all employees announcing a 10% reduction in its global staff.
This marks Tesla’s fifth major layoff since 2017, when it reduced its headcount by 2%. Since then, the company has reduced its teams in 2018, 2019 and 2022 by 9 percent, 7 percent and 3 percent respectively.
Despite this reduction, Tesla’s workforce has seen substantial growth, expanding from 38,000 employees in early 2018 to 140,000 in early 2024.
Two of Tesla Inc.’s top executives have left the carmaker in the midst of its latest round of job cuts, according to people familiar with the matter.
Senior Vice President Drew Baglino resigned from the company, according to one of the people, who asked not to be identified because the information is private. He’s been one of just four named executive officers at Tesla, leading engineering and technology development for its batteries, motors and energy products.