Elon Musk, CEO of Tesla, has initiated a sweeping restructuring effort within the company, announcing the disbandment of the division responsible for overseeing Tesla’s Supercharger business.
This move comes alongside the dismissal of two senior executives and the termination of hundreds of additional staff positions.
The decision underscores Tesla’s response to a downturn in the electric vehicle (EV) market.
In an internal memo circulated on Monday, Musk revealed that Rebecca Tinucci, head of the superchargers group, and Daniel Ho, head of new products, would be departing, along with their entire teams totalling about 500 employees.
The memo highlighted the need for stringent cost reduction measures and emphasised the importance of streamlining operations.
While the supercharger operations will persist, the restructuring has raised questions regarding the future trajectory of Tesla’s charging business. The dismantling of the public policy unit, following the departure of its leader Rohan Patel in April, further signals the company’s strategic shift.
Needs to be “hard core”
Musk’s memo, initially reported by The Information, underscored the urgency of the situation, stating, “Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction.” He added a directive for managers to resign if they retain more than three employees who fail to meet the company’s standards.
The latest round of dismissals follows Musk’s announcement last month of plans to reduce Tesla’s workforce by “more than 10 percent,” equating to over 14,000 jobs, in a bid to foster a leaner and more innovative organisational structure.
Tesla’s financial performance in the first quarter of the year marked a significant decline, with revenues plummeting nearly 10 percent compared to the same period last year. This downturn, coupled with a substantial decrease in the company’s share price, has prompted a sense of urgency in implementing cost-saving measures.
Uncertainty of work
Employees affected by the restructuring expressed surprise and uncertainty regarding the future of Tesla’s charging network. Will Jameson, a former member of the Tesla supercharger team, voiced his astonishment on social media platforms, indicating that the decision caught many within the company off guard.
Despite these changes, Musk affirmed Tesla’s commitment to expanding its supercharger network, albeit at a slower pace. He emphasised a renewed focus on ensuring 100 percent uptime and enhancing existing locations.
The restructuring efforts within Tesla reflect the company’s adaptability amid evolving market conditions and signal a strategic realignment under Musk’s leadership. As Tesla navigates through these changes, the future trajectory of its charging business and broader operational landscape remains subject to speculation and scrutiny.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
