Tesla has disbanded its new marketing team as part of company layoffs. Elon Musk approved this decision less than a year ago. The pan-U.S. growth content team, consisting of 40 employees, was led by senior manager Alex Ingram, who has now been laid off, according to individuals familiar with the matter.
Both Ingram and George Milburn, who led the global team, have been let go. The company still retains a small number of marketing staff in Europe, according to one of the sources. Additionally, sources speaking on the condition of anonymity revealed that Tesla’s design studio and employees based in Hawthorne, California, have also faced significant cuts.
This move signifies the initiation of Tesla’s new advertising initiative. The electric vehicle (EV) manufacturer had refrained from utilizing TV, radio, print, or online ads for an extended period. Until now, the brand primarily relied on word-of-mouth promotion. However, Musk had announced last year that Tesla would explore advertising and evaluate its effectiveness. Ingram began assembling the growth team approximately four months ago. Investors had urged Musk to prioritize marketing efforts, given the slowing growth in global EV sales and increased competition from other brands.
The layoffs within Tesla’s growth team represent the company’s largest job cuts to date. Musk mentioned last week that this action would impact over 10% of the global workforce. Bloomberg reported this week that the CEO has pushed for a 20% reduction, putting more than 20,000 jobs at risk. Tesla’s shares dropped by 3% at 12:20 p.m. on Monday in New York. The stock has declined by more than 40% this year, making it the second-worst performing stock in the S&P 500 index.