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CEO Elon Musk wrote that Toledano "has been on leave for a few months to spend more time with her family and has decided to continue doing so for personal reasons. She's been amazing and I'm very grateful for everything she's done for Tesla."
The company is also appointing a new VP of People and Places, Kevin Kassekert, who will oversee HR and facilities, among other duties.
Earlier on Friday, Bloomberg reported Toledano was leaving the company.
Toledano is the second high-level executive to leave the company this week. Chief accounting officer Dave Morton announced in a filing Friday that he had left the company this past Tuesday after only a month on the job.
Tesla announced Toledano joined Tesla in May 2017 as chief people officer.
Tesla shares were down nearly 9 percent premarket on Friday, eventually closing down 6 percent for the day. A Tesla spokesperson was not immediately available for comment.