On April 15, 2024, Tesla, the electric automaker, made significant changes to its workforce. Here are the key details:

1. Layoffs and Departures:

   - Tesla laid off more than 10% of its global workforce, which could impact over 14,000 people.

   - Two high-profile executives, Drew Baglino (Tesla’s SVP of Powertrain and Energy) and Rohan Patel (VP of Public Policy and Business Development), left the company on the same day as the layoffs. Baglino had been with Tesla for 18 years.

   - Patel cited "big overall changes" at the company as the reason for his departure. Baglino described it as a "difficult decision" to leave.

2. Reasons for Layoffs:

   - Tesla's layoffs were driven by a need to cut costs and boost productivity. CEO Elon Musk emphasized the importance of preparing the company for the next phase of growth.

   - Musk acknowledged that the company had experienced "duplication of roles and job functions" in certain areas, necessitating the reduction in headcount¹.

3. Challenges Faced by Tesla:

   - Tesla reported its first quarterly loss in three years in 2023, signaling a cooling demand for electric vehicles (EVs).

   - The company warned investors that sales growth in 2024 could be "notably lower" than its goal of 50% annual growth.

   - Tesla is also navigating a product cycle transition, with the Cybertruck recently entering production and the Model Y without significant updates for its fourth year.

Despite these challenges, Tesla remains a prominent player in the EV industry, and its actions reflect the company's ongoing efforts to adapt and innovate in a competitive market.