Achi news desk-
Tesla boss Elon Musk has finally responded after media outlets around the world reported on Monday that the company plans to lay off 10% of its workforce and that two key executives have already left the automaker.
According to TeslaratiMusk, 52, explained that Tesla must “reorganize and streamline the company for the next phase of growth” every five years.
“As we prepare the company for the next phase of our growth, it is extremely important to look at all aspects of the company to reduce costs and increase productivity,” Musk said in an email to employees.
“As part of this effort, we have undertaken a thorough review of the organization and taken the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it has to be done,” he continued.
Later, senior vice president of Powertrain Drew Baglino and vice president of Public Policy and Business Development Rohan Patel announced their departure from Tesla.
As competition heats up and it becomes increasingly clear that it must modernize its product line, Tesla has been preparing to launch a new era of growth for its automotive division.
Although the Cybertruck was introduced less than six months ago and the Model 3 was recently updated, Tesla is preparing to introduce a new next-generation vehicle platform that will allow it to enter a new growth cycle.
The company is expected to launch its next-generation platform featuring the Robotaxi and a rumored $25,000 vehicle in the second half of 2025.
However, the company has warned investors of lower growth rates in 2024 and early 2025 due to the focus on the new platform.
