A substantial Tesla layoffs is currently underway in the Elon Musk-owned company, Tesla Inc., impacting its newly established marketing team and other departments, as part of a broader company restructuring. This move marks a significant reversal from its brief venture into more traditional advertising approach initiated under Musk less than a year ago.
The Tesla layoffs have profoundly impacted the entire U.S. “growth content” team, a group formed just four months ago and comprised approximately of 40 employees. According to Bloomberg, this team, led by senior manager Alex Ingram and global team leader Jorge Milburn, was among those who were let go. While the U.S. marketing team has been significantly reduced, a small marketing staff remains active in Europe.
Tesla Marketing Team Fired
Additional job reductions were reported in Tesla’s design studio and its facilities in Hawthorne, California. These cuts are part of what Musk has described as the “largest-ever job cuts” at Tesla, aimed at reducing the global workforce by more than 10%. Bloomberg recently reported that Musk is pushing for a 20% reduction in staff, which could translate to over 20,000 job losses.
This Tesla marketing layoffs coincide with a challenging period for Tesla. Its stock fell 3% by midday Monday in New York, contributing to a year-to-date decline of over 40%. Tesla’s performance ranks second-worst in the S&P 500 Index for this year.
Musk commented on the effectiveness of the disbanded marketing team’s efforts on social media platform X, noting that the advertisements created were “far too generic” and could have been associated with any car brand. This reflection follows a period of experimentation with traditional advertising, which was a departure from Tesla’s longstanding reliance on word-of-mouth for brand promotion.
The cuts and strategic reversals occur amidst broader challenges for the company, including a slowdown in global EV sales and heightened competition in the market. Additionally, Tesla’s advertising shift had overlapped with Musk’s acquisition of the company formerly known as Twitter, which has been struggling with a significant drop in advertising revenue amid controversies over content moderation and Musk’s public statements.