Musk Picks Up the Axe Again, Cuts Sales Staff in Major U.S. Markets

The torturous wait to learn if Tesla’s job cuts would come to their doorstep ended in April for dozens of members of the automaker’s sales team. As it embarks on a cost-saving plan, Tesla has let go numerous staff members and sought to close the bulk of its storefronts after moving the company’s buying process online. Last quarter’s grim deliveries report didn’t paint a rosy picture for the company, suggesting more cost-cutting to come.

According to Bloomberg, the axe fell in three U.S. cities last week.

The cuts came in Chicago, Brooklyn, and Tampa on Thursday, anonymous sources claim, with the pink-slipped staff made up of “inside sales” teams whose job was to reach out to potential customers and stimulate sales by offering test drives. Their role evolved after Tesla’s February sales model switcheroo, however. In the wake of the changes, these team members found themselves tasked with cleaning and delivering vehicles, as well as fielding inbound calls.

A now former employee told Bloomberg that the Tampa team (20 sales advisors, 2 managers) was terminated via conference call, effective immediately. A Brooklyn-based former employee recounted the same story.

While Tesla’s operations at these three locations will not cease, they won’t be as populous as before. The automaker still has customer service reps on the payroll. The sources claimed that inside sales teams remain in Tesla’s home base of Fremont, California, and Las Vegas.

Earlier this year, on the heels of a second consecutive profitable quarter (a first for the company), CEO Elon Musk stated his confidence in profitability going forward, with only the first quarter of 2019 in doubt. Almost immediately, the automaker began cutting its workforce while embarking on a campaign of seemingly endless price alterations. Many storefronts resisted closure due to lease terms.

Last month, Musk changed his prediction for Q1 2019 to a loss — an outlook backed up by last quarter’s reduced production numbers and a delivery drop of 31 percent compared to the previous quarter. Deliveries of pricey Model S and X vehicles sank to the lowest point in years.

[Image: Tesla]