Austin, Texas, Tuesday, April 23, 2024 – In an internal memo obtained by Reuters, Tesla CEO Elon Musk announced a significant workforce reduction, targeting over 10% of the company’s global employees.1
This move comes amid reports of slowing sales growth and an intensifying price war within the electric vehicle market.
The memo reportedly cites the need for streamlining operations “for the next phase of growth” as the primary reason for the layoffs. Musk acknowledges the difficulty of this decision but expresses his belief that it’s necessary to maintain Tesla’s competitiveness.
The specific details of the layoffs, including which departments or regions will be most affected, remain unclear at this time.
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk said in the memo obtained by CNBC.1
“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” the memo said.
The memo was first reported by Electrek.
The news follows Tesla’s recent report of its first year-over-year decline in vehicle deliveries since 2020.
The company is also facing increased competition from established automakers who are rapidly entering the electric vehicle market.
The impact of these layoffs on Tesla’s overall operations and future production remains to be seen.
- CNBC.com: https://www.cnbc.com/2024/04/15/tesla-shares-dip-in-premarket-trade-on-global-layoff-reports.html[↩][↩]
