Tesla’s workforce has dwindled to approximately 121,000 employees globally, reflecting a significant reduction of over 14% this year. Internal records indicate this figure includes both full-time and temporary workers, as noted from the company’s “everybody” email distribution list dated June 17.
In an email to employees on the same day, CEO Elon Musk announced a comprehensive review of stock options grants aimed at recognizing exceptional performance. Musk stated, “Options grants will also be awarded to anyone who does something outstanding for the company.” This move comes after Tesla paused performance-based equity awards, a decision first reported by Reuters.
The layoffs began in April when Musk informed staff that the company would cut more than 10% of its workforce. Reports from Bloomberg suggested that Musk was targeting a 20% reduction, a figure that could escalate. During the first-quarter earnings call in April, Musk remarked, “We’ve reached an inefficiency level of 25% to 30% after a long period of prosperity,” emphasizing the need for a corporate reorganization.
As of December, Tesla’s total headcount stood at 140,473, which includes both salaried and hourly workers. The latest figures suggest a significant headcount drop since then. However, not all layoffs have been permanent; the company recently reinstated some employees from its dismantled Supercharging team, including its leader, Rebecca Tinucci.
Tesla’s broader layoffs coincide with a downturn in sales, attributed to an aging electric vehicle lineup and heightened competition in markets like China. The company reported a 9% decline in annual revenue for the first quarter, marking its steepest drop since 2012. This trend aligns with a slowdown in electric vehicle sales growth across the industry, which has struggled following two years of rapid expansion.
Concerns about further layoffs persist among factory workers, especially as the second quarter’s production and delivery report looms. A Tesla employee, speaking on condition of anonymity, indicated anxiety about potential additional job cuts in July. Meanwhile, Musk has assured investors that a new “Master Plan” will soon be unveiled, alongside a design for a dedicated robotaxi, scheduled for August 8. Tesla did not immediately respond to requests for comment.