Tesla's Turmoil Continues as HR Chief Becomes the Latest Executive to Depart
ICARO Media Group
In yet another blow to Tesla's already turbulent year, the company's head of human resources, Allie Arebalo, has reportedly been let go, according to sources cited by Bloomberg. Arebalo, who directly reported to CEO Elon Musk, is the latest in a series of senior executives to leave the electric car manufacturer.
Tesla has been facing a challenging time as of late, marked by mass layoffs that have taken a toll on employee morale. In fact, two rounds of job cuts within a span of a month have affected up to 20 percent of the company's global workforce. The dire situation has raised concerns among investors regarding Tesla's future prospects.
Adding to the company's troubles are declining sales and the imminent influx of more affordable alternative electric vehicles in the market. Musk's questionable leadership, characterized by eccentric outbursts and controversial statements, has also dented Tesla's reputation. Shareholders remain skeptical of his strong emphasis on self-driving technology and artificial intelligence, resulting in a lack of confidence in the company's direction.
Allie Arebalo's departure follows a string of high-level resignations, including the vice president of powertrain and energy engineering, Drew Baglino, head of public policy, Rohan Patel, and vice president of investor relations, Martin Viecha. Furthermore, senior director of EV charging, Rebecca Tinucci, and her entire team were recently let go, leading to the cancellation of several Supercharger station leases.
In addition to these setbacks, Tesla has decided to scale back its ambitions by withdrawing from the development of its pioneering "gigacasting" manufacturing process, which has significant implications for the company's car production capabilities. The automaker has also reduced its summer intern program, despite its minimal impact on the company's financials and potential disruptions to its hiring pipeline.
In an email obtained by Electrek, Musk expressed his determination to enforce stringent standards regarding layoffs, warning that executives with underperforming subordinates would be let go. This sentiment, however, appears to have contributed to the departure of numerous senior executives.
With Tesla's ongoing turmoil and the exodus of key personnel, the company's future remains uncertain. Investors are closely monitoring the situation as they grapple with concerns over the company's viability and future growth prospects.