Tesla has laid off its entire US growth content team, comprising 40 employees, just four months after the team’s establishment. This move follows criticism from CEO Elon Musk, who expressed dissatisfaction with the team’s work on Twitter, labeling it as “generic.” Musk’s previous statements have highlighted Tesla’s reliance on word-of-mouth advertising, but the company’s decline in vehicle deliveries this year has raised concerns that the layoffs may provide competitors with a significant advantage.
In a 2019 Twitter post, Musk stated that Tesla does not engage in advertising or endorse paid endorsements, allocating those funds towards product enhancement. While a small portion of Tesla’s marketing staff in Europe remains unaffected, the recent layoffs mark the company’s largest workforce reduction to date.
Investment firm head Ross Gerber of Gerber Kawasaki expressed concern about the potential impact of these layoffs, suggesting that competitors may eagerly hire the laid-off Tesla employees due to their knowledge and experience. Similarly, former Tesla worker Deitrich Dickson, who contributed to the production of the Model 3 sedan at the Fremont, California factory, indicated that over-hiring may have occurred due to overly optimistic sales projections, resulting in periods of idleness for employees.
