Tesla Layoff 2018 Headcount Analysis

 

 

// Tesla Cut 9% of Workforce
  • Tesla will lay off 9% of its employees beginning this week, CEO Elon Musk said on Tuesday.
  • The layoffs will not affect production-line workers as the company ramps up Model 3 production.
  • During Tesla‘s first-quarter earnings call in May, Musk said the company would begin restructuring operations in an effort to meet its profitability goals.
  • Musk has said the company will become profitable in the second half of the year and won’t need to raise money.
  • This isn’t the first Layoff:
// This Isn’t Poor Management
  • To me this was much worse as, in my view, it showed a flaw in their hiring practices
  • As someone that has managed many teams and people over the years, I believe firmly this logic if flawed, and that a better approach exists.
  • If an employee isn’t performing well in their role, it’s likely due to the work environment they’re in or them not being a good fit for the role
  • In either case, it’s managements flaw that led to the worker underperforming and simply replacing them with someone else isn’t really a solution –
  • That said, this layoff is a strategic move that I fully understand and while sobering as it is, think it’s a good move for the company. The thing to watch will if this occurs again, and if so for what reason
// Back to Tesla
  • Let’s look at overall employee growth, and previous layoffs – Tableau