elon musk

Tesla is letting go about 9% of employees, with the first round of layoffs beginning this week.
Tesla CEO Elon Musk sent an email to all employees announcing the layoffs.
The email adhered closely to career experts’ guidelines for conducting layoffs. For example, Musk gave legitimate, justifiable reasons for letting people go.

On Tuesday, Tesla CEO Elon Musk sent an email to staff announcing that the company would fire about 9% of employees, with the first round of layoffs beginning this week.

As Business Insider’s Mark Matousek reported, the email was leaked to media outlets, after which Musk posted it to Twitter.

In the email, Musk wrote, “Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today.” Musk also cited the need to reduce costs and become profitable.

The cuts will “almost entirely” affect salaried employees, and not production associates, the email said. As for those employees being laid off, Musk wrote, “Tesla is providing significant salary and stock vesting (proportionate to length of service).”

Towards the end of the email, Musk wrote, “we are making this hard decision now so that we never have to do this again.”

Musk rightly addressed both the victims and the survivors of the layoffs

There’s no one, universally approved way to conduct mass layoffs — and certainly not one way that will avoid hurting people, financially and emotionally.

But career experts have cited certain guidelines for firing people, and Musk seems to have followed the most important.

As Ben Horowitz, a cofounder and general partner of the venture-capital firm Andreessen Horowitz, wrote in a 2010 blog post, it’s important for the CEO to address the entire company before going through with he layoffs …read more

Source:: Business Insider


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