Tesla’s latest round of layoffs has entered a fourth week, as the company has announced further staff cuts.
The layoffs, first reported by Business Insider, will affect new areas of the company, including engineering, software, and services.
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It is unclear how many more staff members were laid off over the weekend but Business Insider reported at least seven employees were affected on Monday (6 May).
Tesla’s mass layoffs started in April when the electric vehicle (EV) giant said that 10 percent of its 140,000-strong workforce would be laid off. Layoffs included staff within Tesla’s 500-strong EV charging team along with its head Rebecca Tinucci.
In an email to employees, CEO Elon Musk said Tesla needed to be “absolutely hardcore” about cuts and all staff members who “don’t obviously pass the excellent, necessary and trustworthy test” would be fired.
The layoffs began shortly after Tesla’s Cybertruck orders fell short of expectations.
In Q1 2024, Tesla stated that it had only sold 386,000 cybertruck units, despite producing over 430,000.
Explaining this decline in sales, Tesla stated that it had faced factory shutdowns due to the Red Sea conflict, which began in October 2023, and an arson attack at its Berlin Gigafactory.
The suspected attack occurred in March 2024 and Germany’s federal prosecutor is investigating potential suspects.
