Elon Musk, CEO of Tesla, has recently announced that his company needs to undergo a “complete organizational overhaul” every few years in order to reach new levels of success. This comes after a series of mass layoffs at Tesla, where over 10% of the staff were let go.
Musk explained that Tesla needs to go through an overhaul every “half decade or so” to stay innovative and competitive. Despite this, Musk noted that the executive team at Tesla has remained stable for over a decade. The recent layoffs were prompted by the company’s rapid growth, which led to redundancy in certain roles. Musk expressed his dislike for the layoffs but insisted that they were necessary for the company to remain efficient and continue growing.
Tesla’s recent layoffs coincided with the departure of two long-time executives, Drew Baglino and Rohan Patel. Both executives announced their departure from the company this week. Baglino had been with Tesla since 2006 while Patel joined in 2016.
Tesla is currently facing challenges as it contends with declining sales and increased competition from Chinese automakers like BYD. Musk has acknowledged the competitive nature of Chinese car companies and the potential impact on Tesla’s global market share. Representatives for Tesla have not yet responded to requests for comment regarding these recent developments at the company.