Tesla slashed a newly formed marketing team as part of companywide layoffs, reversing course from a traditional advertising push that Chief Executive Officer Elon Musk greenlighted less than a year ago.
The entire US "growth content" team, a group of about 40 employees overseen by senior manager Alex Ingram, was eliminated in the ongoing job cuts, according to people familiar with the matter.
Ingram and Jorge Milburn, who led the global team, were dismissed, they said. The company still has a small number of marketing staff in Europe, one person said.
There were also significant layoffs in Tesla's design studio and staff located in Hawthorne, California, said the people, who asked not to be identified discussing private information.
In a post on X responding to Bloomberg's report, Elon Musk wrote of the content team's work: "The ads were far too generic - could've been any car."
The cuts mark a pullback from Tesla's nascent advertising initiatives. The automaker had long eschewed television, radio, print, or online ads - and had built a formidable brand largely through word-of-mouth - before Musk said last year that Tesla would "try a little advertising and see how it goes."
Ingram started building the growth team about four months ago.
Investors have increasingly called on Musk to focus more on marketing as global EV sales growth has slowed and more competitors have entered the market. Tesla's embrace of advertising has also broadly coincided with Musk's acquisition of the company formerly known as Twitter. The social media platform sought to stem a sharp decline in ad revenue, driven by major brands' unease over content moderation and Musk's own sometimes-controversial posts.
The upheaval in Tesla's growth team underscores the broad reach of the company's largest-ever job cuts, which Musk said last week would affect more than 10% of the global workforce. Bloomberg reported this week that the CEO has pushed for a 20% reduction, which could mean eliminating more than 20,000 jobs.
Tesla's shares fell 3% at 12:20 pm Monday in New York. The stock has tumbled more than 40% this year and is the second-worst performer in the S&P 500 Index.
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