Tesla faces top-level resignations amidst a 10 per cent global workforce reduction as the company sees declining demand for luxury EVs
Tesla, one of the biggest EV players in the luxury space, is facing a trail of challenges as executives at the top-level position have resigned from the company. This news comes at a time when Tesla is witnessing weak demand which prompted it to announce massive layoffs, cutting down around 10 per cent of its total workforce.
According to a report by Bloomberg, the job cuts could even be worse, pushing the figure to 20 per cent in some divisions.
Meanwhile, at the top-position level, Senior Vice President Drew Baglino will be leaving the automobile company. He was one of the four named executive officers and was heading the engineering and technology development unit for Tesla's batteries, motors, and energy products.
Baglino, who played a prominent role in Tesla's public appearances such as co-hosting earnings calls and sharing the stage with CEO Elon Musk at various events, including Tesla's investor day, served the company for almost 2 decades. Along with him, Rohan Patel, Tesla's vice president of public policy and business development also resigned from the company.
Elon Musk disclosed via an internal email, to reduce Tesla's global workforce by more than 14,000 employees owing to the diminishing outlook for electric vehicles.
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk stated in the memo. “There is nothing I hate more, but it must be done.”