Tesla Layoffs: CEO Elon Musk Fires Whole US “Growth Team” After Four Months; Q1 Profit Drops
Tesla Inc. has cut its recently created marketing staff, reversing its recent move into conventional advertising, amid continuous layoffs across the whole firm. Particularly considering that little more than a year ago, Chief Executive Officer Elon Musk approved a marketing drive, this decision represents a dramatic change in course.
All forty or so members of the “growth content” team in the United States, led by senior manager Alex Ingram, were reportedly laid off as part of the recent layoffs. Among those fired were Ingram and Jorge Milburn, the head of the international team. Reportedly, the corporation only employs a tiny number of marketing personnel throughout Europe.
Not only was there a large decrease in the marketing division’s workforce, but there were also notable layoffs in Tesla’s design studio and personnel in Hawthorne, California. These actions are a part of the biggest employment cutbacks that Tesla has ever made; according to reports, CEO Elon Musk is pushing for a reduction of more than 20%, which may impact over 20,000 positions.
In reaction to Bloomberg’s article, Elon Musk criticized the work of the content team, saying that the ads that were created were “far too generic” and could have been used for any kind of automobile. This criticism aligns with the views of investors who have been pressing Musk to concentrate more on marketing, particularly in light of the slowing increase in worldwide sales of electric vehicles (EVs) and the heightened competition in the industry.
Initially, Tesla’s adoption of advertising aligned with Musk’s purchase of the social media network that was once known as Twitter. This action was seen as an effort to offset a precipitous drop in platform ad income, which was mostly caused by worries about content control and contentious statements made by Musk himself.
Tesla revealed its first sales decrease since 2020 along with a steep reduction in quarterly earnings. Tesla announced a $1.13 billion net profit in the first quarter of 2024, a 55% decline from the same period the year before. Revenues fell 9% year over year to $21.3 billion. The average revenue per car delivered fell by over 5% from the previous year, and these decreases were ascribed to the effect of recurrent price cuts and the more competitive EV market.
Despite these difficulties, Tesla’s stock had a noteworthy rise, rising more than 13% in after-hours trading as a result of Musk’s promise to expedite plans for more reasonably priced EVs. The business said that it will accelerate the release of additional models, with the goal of starting production faster than previously disclosed—possibly as early as late 2024. This action is a calculated step in the direction of affordability, meeting investor and market expectations.
In a conference call, Musk disclosed that manufacture of these new cars may start as early as late 2024—a considerable advance over the previous estimate of the second half of 2025. This expedited schedule is indicative of Tesla’s dedication to creativity and flexibility in the EV industry.
