Musk Slashes Tesla’s US Marketing Team: “Ads Were Far Too Generic”

Tesla (NASDAQ: TSLA) gutted its newly formed marketing team as part of broader layoffs across the company, signaling a departure from its recent advertising initiatives approved by CEO Elon Musk less than a year ago.

The entirety of Tesla’s “growth content” team in the US, comprised of approximately 40 employees overseen by senior manager Alex Ingram and reporting to Jorge Milburn, has been eliminated in the ongoing round of job cuts, according to sources familiar with the matter. Both Ingram and Milburn were among those let go.

In a message on X in response to Bloomberg’s report on the layoff, Musk commented on the content team’s efforts, saying the concept of their “ads were far too generic.”

While the US team has been disbanded, the company still retains a smaller marketing presence in Europe.

In addition to the marketing division, there have been substantial layoffs within Tesla’s design studio and staff located in Hawthorne, California, insiders revealed on condition of anonymity due to the sensitive nature of the information.

The move marks a retreat from Tesla’s recent foray into advertising. Historically, the electric vehicle manufacturer shunned traditional advertising mediums such as television, radio, and print, relying instead on its product quality and word-of-mouth promotion. However, Musk’s greenlighting of advertising efforts last year saw the formation of the growth team under Ingram’s leadership about four months ago.

Critics have pointed to slowing global EV sales and increased competition as reasons for Tesla to invest more heavily in marketing. The company’s pivot towards advertising has also coincided with Musk’s acquisition of the social media platform Twitter, now rebranded as X. Musk has sought to revitalize Twitter’s ad revenue, which had dwindled due to concerns over content moderation and his own controversial posts.

The restructuring within Tesla’s marketing department underscores the scale of the company’s ongoing layoffs, which Musk announced last week would impact over 10% of the global workforce. Reports from Bloomberg suggest that certain divisions could see cuts closer to 20%, potentially affecting more than 20,000 employees.

This also comes after Tesla earlier this month revealed plans to lay off approximately 14,000 employees. This latest round of layoffs at Tesla follows a previous round announced in 2022, reflecting the company’s proactive stance in adjusting its workforce in response to changing market conditions.

Information for this story was found via Fortune, Bloomberg, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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