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The weak demand for electric vehicles has led to Tesla's largest ever layoff in the world, and two important deputies of CEO Elon Musk have also resigned.
People familiar with the situation said that the proportion of layoffs in some departments was close to 20%.
Drew Baglino, senior vice president of Tesla, said on social media platform X on Monday that he had left Tesla, confirming the previous report. Baglino is one of Tesla's top management, responsible for the engineering and technical development of batteries, engines and energy products.
He has worked in Tesla for 18 years. He once took part in hosting the performance conference call, and also attended many events with Musk, including Tesla Investor Day a year ago. In addition to Baglino, Rohan Patel, Tesla's vice president for public policy and business development, has also left. Musk thanked them.
Tesla shares fell more than 3 per cent on monday. The stock has fallen 33% this year.
As the prospect of electric vehicle sales worsened, Musk announced that it would cut more than 10% of its workforce globally, which could exceed 14000 people. In his email to employees, he mentioned some job duplication and the need to reduce costs.
According to the memo that Musk gave to his employees, he wrote, "We are preparing for the next stage of growth. It is very necessary to carefully evaluate every aspect of the company for cost saving and productivity increase. The last thing I want to do is this, but I must complete it.".
An insider said that Tesla's management was authorized to significantly cut costs. In order to meet the standards, it could take strong measures, including significant layoffs, and sometimes even exceed the threshold suggested by Musk.
Baglino's departure may exacerbate some investors' concerns about Musk's successor. Musk has been the CEO of Tesla since 2008. In addition, he also leads six other companies, so he cannot devote all his energy and time to Tesla. Musk said earlier this year that he would rather develop artificial intelligence (AI) products outside Tesla without 25% voting control.
Musk lost a deputy in August last year. Zachary Kirkhorn, then the chief financial officer, resigned.
It is unclear whether the resignation of several Tesla executives is related to the company's predicament. Tesla's quarterly vehicle deliveries announced earlier this month were significantly lower than expected.
At the end of last year, the total number of Tesla employees reached 140473, almost double the number three years ago. The company has been increasing production at its plants in Austin and Berlin.
It was reported earlier on Monday that Musk said in an email, "In the past few years, we have expanded significantly, with many factories around the world, accompanied by the duplication of some posts and work functions"
Walter Isaacson, the author of Musk's biography, said Baglino was an engineer with distinctive personality and easy-going smile. In Isaacson's Biography of Musk published last year, it was mentioned that the atmosphere between Baglino and Musk was tense when they met for the first time.
According to the book, Baglino told J B. Straubel said, "I don't want to participate in the meeting with Elon anymore". Straubel left Tesla in 2019, but rejoined the company's board of directors last year.
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