Tech Insider
Elon Musk in a red Tesla Roadster.
Elon Musk in a Tesla Roadster.

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  • Tesla isn't immune to economic headwinds.
  • Tesla CEO Elon Musk has been through periods of rapid growth and job cuts over the years. 
  • Here's a timeline of the company's recent layoff announcements and hiring freezes.

As of February 2024, electric carmaker Tesla has begun asking managers to identify which employee roles on their team are vital to the company..

Elon Musk has been known for his cost-cutting efforts across his companies. The billionaire cut Twitter's workforce in half after he purchased the company in 2022. Ahead of layoffs at the social media company, the billionaire asked team leaders to create lists of top performers based on performance reviews and code reviews.

Last year, in a sign Tesla might be slowing down its hiring, the Tesla CEO told staff he must approve all new Tesla hires.

Here's a timeline of the past layoffs that have come to Tesla.

October of 2017
The Tesla Model 3 parked in a desert next to a camel.
Setbacks in production of the Tesla Model 3 led to layoffs.

Tesla

In 2017, Tesla laid off 700 workers after running into production issues. The layoffs happened after "production bottlenecks" on the Model 3 car. The Model 3 was Tesla's first attempt at creating a mass-market car. 

Summer of 2018
Elon Musk with his arms outstretched gratuitously
Elon Musk at the 2022 Met Gala.

Noam Galai/GC Images

A year later, Tesla let go of 9% of its employees. The layoffs were part of a company-wide restructuring.

Tesla laid off 3,500 employees in an attempt to boost profitability. Musk said that the layoffs were part of a restructuring to make the company "communicate better, eliminate bureaucracy and move faster."

The layoffs mostly affected salaried employees, sparing production-line workers as the company ramped up Model 3 production.

Early 2019
A red Tesla Model S. parked on a paved road against a red building.
Tesla Model S.

Tesla

In early 2019, Tesla laid off 7% of its staff in its second round of layoffs in just seven months.

Cuts occurred in its sales, delivery and Model S and Model X production teams, CNBC reported at the time. 

June 2022
CEO of Tesla Motors Elon Musk in a cowboy hat and sunglasses.
Elon Musk

SUZANNE CORDEIRO/AFP via Getty Images

Tesla laid off 10% of employees and implemented a hiring freeze in June of 2022. Musk said he felt the economy was starting to turn.

Tesla cut jobs after CEO Elon Musk announced that he planned to cut 10% of salaried staff as he had a "super bad feeling" about the economy. Hundreds of those Tesla employees laid off were from the Autopilot team as the electric-vehicle maker shuttered a California facility. Tesla also paused hiring. 

That same summer, Musk got tough on the Tesla WFH policy, telling executive staff to return to the office or quit.

February 2023
Elon Musk speaking into a microphone while holding a pair of glasses.

Tesla on YouTube

A union accused Tesla of illegally firing employees. Tesla is one of the only major automakers in the US that is not represented by a union.

Tesla laid off dozens of staff at its plant in Buffalo, New York, after workers announced plans to unionize, the Workers United union said in a complain.

The union filed a complaint with the National Labor Relations Board (NLRB) claiming that Tesla unlawfully terminated some staff "in retaliation for union activity and to discourage union activity." 

Tesla denied the allegation, stating that the employees were laid off due to poor performance instead. 

Current Tesla jobs
A group of Tesla cars sit in a parking lot near the company's factory in California.
Documents leaked to a German newspaper indicate Tesla's issues with its self-driving technology could be more serious than previous reports have indicated.

Justin Sullivan/Getty Images

Tesla appears to be hiring again.

As of early June, there were dozens of open roles on Tesla's job board, spanning from Texas to California, Nevada, and other states. The company said it had roughly 126,000 workers as of December 31, 2022. 

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A Tesla layoffs timeline of job cuts and hiring freezes