Tesla recently underwent a significant hiring freeze, removing over 3,000 open positions from its jobs board, leaving only three positions available as part of the “Manufacturing Development Program.” This move comes in the wake of Tesla’s efforts to cut costs after reporting disappointing Q1 earnings. The company aims to reduce its headcount by 10%, with more than 140,000 employees worldwide at the end of 2023.
The initial round of job cuts included executives and members of the Supercharger division, responsible for the company’s fast-charging network. Subsequent rounds of layoffs affected Tesla’s software, service, and engineering departments. Amidst these changes, Rich Otto, the former head of product launches at Tesla, announced his departure citing the need for a new direction and balance within the company.
Otto emphasized the importance of great people and great products in a company, noting that the recent layoffs had disrupted the harmony necessary for success. While Tesla continues to have several hundred job postings on professional platforms, the recent restructuring has sparked a shift in the company’s direction and focus on maintaining a strong workforce to drive innovation and growth.
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