Tesla layoffs and hiring freezes have peppered the company's history. Here's a look at past job cuts.
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As of February 2024, electric carmaker Tesla has begun asking managers to identify which employee roles on their team are vital to the company..
Elon Musk has been known for his cost-cutting efforts across his companies. The billionaire cut Twitter's workforce in half after he purchased the company in 2022. Ahead of layoffs at the social media company, the billionaire asked team leaders to create lists of top performers based on performance reviews and code reviews.
Last year, in a sign Tesla might be slowing down its hiring, the Tesla CEO told staff he must approve all new Tesla hires.
Here's a timeline of the past layoffs that have come to Tesla.
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In 2017, Tesla laid off 700 workers after running into production issues. The layoffs happened after "production bottlenecks" on the Model 3 car. The Model 3 was Tesla's first attempt at creating a mass-market car.
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A year later, Tesla let go of 9% of its employees. The layoffs were part of a company-wide restructuring.
Tesla laid off 3,500 employees in an attempt to boost profitability. Musk said that the layoffs were part of a restructuring to make the company "communicate better, eliminate bureaucracy and move faster."
The layoffs mostly affected salaried employees, sparing production-line workers as the company ramped up Model 3 production.
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In early 2019, Tesla laid off 7% of its staff in its second round of layoffs in just seven months.
Cuts occurred in its sales, delivery and Model S and Model X production teams, CNBC reported at the time.
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Tesla laid off 10% of employees and implemented a hiring freeze in June of 2022. Musk said he felt the economy was starting to turn.
Tesla cut jobs after CEO Elon Musk announced that he planned to cut 10% of salaried staff as he had a "super bad feeling" about the economy. Hundreds of those Tesla employees laid off were from the Autopilot team as the electric-vehicle maker shuttered a California facility. Tesla also paused hiring.
That same summer, Musk got tough on the Tesla WFH policy, telling executive staff to return to the office or quit.
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A union accused Tesla of illegally firing employees. Tesla is one of the only major automakers in the US that is not represented by a union.
Tesla laid off dozens of staff at its plant in Buffalo, New York, after workers announced plans to unionize, the Workers United union said in a complain.
The union filed a complaint with the National Labor Relations Board (NLRB) claiming that Tesla unlawfully terminated some staff "in retaliation for union activity and to discourage union activity."
Tesla denied the allegation, stating that the employees were laid off due to poor performance instead.
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Tesla appears to be hiring again.
As of early June, there were dozens of open roles on Tesla's job board, spanning from Texas to California, Nevada, and other states. The company said it had roughly 126,000 workers as of December 31, 2022.
