Tesla Layoffs: Elon Musk-led Company Cuts Newly Formed Marketing Team As Part of Companywide Job Cuts
Tesla Layoffs: Tesla Inc. has announced job cuts to its recently formed marketing division as part of broader companywide layoffs, marking a significant departure from its prior emphasis on traditional advertising, a move sanctioned by Chief Executive Officer Elon Musk less than a year ago.
Bloomberg in its report quoted sources saying the matter revealed that the entire U.S. “growth content” team, comprising approximately 40 employees under the supervision of senior manager Alex Ingram, has been disbanded amidst the ongoing workforce reductions. Both Ingram and Jorge Milburn, who helmed the global team, were among those terminated, as disclosed by the sources. Although the company retains a limited number of marketing personnel in Europe, according to one individual privy to the matter.
Meanwhile, Tesla’s shares experienced a modest uptick on Tuesday ahead of the unveiling of its first-quarter results, amidst analyst forecasts predicting the lowest gross profit margin for the electric car manufacturer in over six years. In premarket trading, the stock witnessed a 0.7 per cent increase, reaching $143, as anticipation built ahead of the report’s release post-market closure.
During the subsequent conference call following the results disclosure, CEO Elon Musk is anticipated to field probing inquiries from investors regarding the status of the much-discussed “Model 2,” a budget-friendly vehicle he had pledged would be available by 2025 during January’s announcements, reported Reuters.
Tesla’s trajectory of sales growth has notably decelerated, a factor expected to exert substantial pressure on the outcomes revealed on Tuesday. Earlier this month, the automaker disclosed an 8.5% downturn in deliveries alongside escalating inventory levels. Over the weekend, Tesla announced a fresh round of price reductions on various models, including the Model 3 and Model Y, further eroding profit margins as part of a series of global pricing adjustments.
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