Recently, Elon Musk, CEO of Tesla, announced that the company needs to undergo a “complete organizational overhaul” in order to stay innovative and competitive. Musk made this statement following a series of mass layoffs at Tesla, where over 10% of the staff were let go.
Musk emphasized that Tesla needs to go through an overhaul every “half decade or so” to continue growing and remaining efficient. Despite this, Musk noted that the executive team at Tesla has remained stable for over a decade.
Tesla’s recent layoffs were prompted by the company’s rapid growth, which led to redundancy in certain roles. Musk expressed his dislike for the layoffs but insisted that they were necessary for the company to remain efficient and continue growing.
The layoffs at Tesla coincided with the departure of two long-time executives, Drew Baglino and Rohan Patel. Both executives announced their departure from the company this week. Baglino and Patel had been with Tesla since 2006 and 2016, respectively.
Tesla is currently facing challenges as it contends with declining sales and increased competition from Chinese automakers like BYD. Musk has acknowledged the competitive nature of Chinese car companies and the potential impact on Tesla’s global market share.
Representatives for Tesla have not yet responded to requests for comment regarding the recent developments at the company.
