The decision marks a significant pivot under Napoli, who took the helm on June 1 with a mandate to stabilize the struggling automaker. Facing persistent difficulties in scaling production and maintaining build quality, the company has initiated a rigorous cost-cutting program targeting $1.4 billion in savings by year-end. This strategy already includes an 18% reduction in the total workforce and the cancellation of a second shift at the Arizona manufacturing plant.
Napoli has overhauled the C-suite to support this restructuring, following the exit of several high-ranking executives, including Senior Vice President of Finance Gagan Dhingra. These internal tremors come as the company warns of lower-than-anticipated production volumes, a move that triggered a 15% drop in stock price on Wednesday. Suppliers are also feeling the friction, as the company’s SEC filings note that reduced output could strain existing contractual relationships.




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