Tesla to Cut Over 10% of Global Workforce in Layoffs

Tesla, the electric car company led by Elon Musk, is facing a period of turmoil as signs of trouble multiply. The company announced on Monday that it would be laying off more than 10 percent of its workforce, amounting to about 14,000 people, in an effort to cut costs. This news comes as Tesla is grappling with increasing competition and declining sales.

In addition to the layoffs, two senior executives at Tesla have resigned, further adding to the sense of instability at the company. Drew Baglino, a senior vice president who played a significant role in Tesla’s growth, announced his departure after 18 years with the company. Another key executive, Rohan Patel, who was instrumental in securing regulatory approval for self-driving technology, also confirmed his departure.

The management changes and layoffs are seen as a reflection of Elon Musk’s unpredictable leadership style, with some speculating that the executives may have been blamed for Tesla’s recent troubles. Despite the job cuts being a common practice at Tesla, investors did not react positively, with Tesla shares ending the day down more than 5 percent.

As Tesla struggles to reverse its decline in car sales and faces challenges from competitors, including Chinese electric car makers, the future of the company remains uncertain. With Musk’s focus on ventures like self-driving taxis rather than new car models, questions are being raised about the company’s direction and ability to compete in the rapidly evolving electric vehicle market.