Tesla's Senior Vice President Drew Baglino resigns amidst company's largest job cuts

Tesla's VP resigns: Amid discussions of Tesla's largest-ever job cuts, Senior Vice President Drew Baglino has resigned from his position. The electric car manufacturer, Tesla, plans to reduce its workforce by approximately 10 per cebt as part of cost-saving measures.

The decision to downsize comes in the wake of disappointing first-quarter sales for Tesla, prompting CEO Elon Musk to outline plans for the layoffs in a memo to employees. It's estimated that around 14,000 employees out of the 140,473 working for the Austin, Texas-based company by the end of last year could be impacted by this restructuring.

18-year contribution

Baglino, who oversaw engineering and technology development for Tesla's batteries, motors, and energy products, has been a notable figure at the company for approximately 18 years. He co-hosted earnings calls and appeared alongside Musk at various events, demonstrating his integral role within Tesla.

His departure, alongside that of Tesla's Vice President of Public Policy and Business Development, Rohan Patel, highlights the company's ongoing changes. Patel announced his resignation via social media.

Tesla's delivery downturn

The layoffs coincide with Tesla reporting a decline in global vehicle deliveries in the first quarter, marking its first decrease in nearly four years. The company faces challenges in 2024, including high interest rates affecting consumer spending, particularly in China, where local competitors offer cheaper alternatives.

Musk stressed the importance of scrutinising every aspect of the company for cost-saving measures and improving productivity as Tesla gears up for its next growth phase.

This isn't the first time Tesla has implemented layoffs; previously, the company reduced its New York workforce by 4 per cent in February last year.

(With Reuters Inputs)