5 ms·
Like most of Elons strategic vision, its hardly a tactic he came up with on his own. his operating strategy is similar to a few historic figures i can think of
by nimbius 5y ago
Like most of Elons strategic vision, its hardly a tactic he came up with on his own. his operating strategy is similar to a few historic figures i can think of.
Sears CEO Eddie Lampert was so ruthless in his cost cutting he would pit his own divisions of sears against eachother for bonuses an even continued employment. he declared a moratorium on any in-store livery updates for 25 years and played the company off its stock to increase its value. the guy bilked sears for personal wealth hovering around 2bn and left shareholders holding the bag.
Al Dunlap, former Sunbeam CEO, was so ruthless people called him "chainsaw al." he was notorious for massive layoffs, factory shutdowns, and threatening physical violence against board members. the guys famous catchphrase was "if you want to be liked, get a dog." he died in 2019, but is really only remembered for massive accounting fraud nowadays.
- staunch 5y agoThose examples couldn't be less like Musk's strategy. There are both good/ethical and bad/wrong reasons to do layoffs. Musk's primary strategy at Tesla has been to create innovative products that people want to buy in huge numbers.
- thehappypm 5y agoI agree, nothing about Tesla and SpaceX has anything to do with a aggressive cost cutting type of strategy
- nimbius 5y agoYoure correct. perhaps a more salient example is in order. https://www.inc.com/suzanne-lucas/tesla-fires-hundreds-of-workers-for-poor-performance.html https://www.inc.com/suzanne-lucas/tesla-fires-hundreds-of-wo... Tesla arguably chose to fire 1200 people to avoid paying their severances. https://electrek.co/2019/05/24/tesla-cost-cutting-effort-toilet-paper/ https://electrek.co/2019/05/24/tesla-cost-cutting-effort-toi... Teslas 2019 cost cutting effort included basic hygene products like toilet paper, arguably an inconsequential operating expense. Employees had to bring their own to work.
- lupire 5y agoTesla's model is to profit by lobbying for subsidies and ignoring laws.