Tesla Announces Layoffs, Cutting Over 10% of Global Workforce

Tesla CEO Elon Musk sends out an email informing of layoffs affecting over 10% of the company's workforce, possibly around 14,000 employees.

  • Tesla CEO Elon Musk sends out an email informing of layoffs affecting over 10% of the company’s workforce, possibly around 14,000 employees.
  • Musk cites the need to cut costs and boost productivity as reasons for the layoffs, following disappointing vehicle deliveries and amid preparations for the next growth phase.
  • Despite recent reports of plans to increase pay for engineers, Tesla emphasizes the necessity of streamlining operations for leaner and more efficient growth.

Tesla CEO Elon Musk has announced significant layoffs affecting over 10% of the company’s global workforce, potentially impacting around 14,000 employees. The decision, conveyed through an email, aims to address cost reduction and enhance productivity as Tesla braces for its next growth phase.

While recent reports indicated plans to increase pay for Tesla engineers, the company underscores the importance of streamlining operations. Musk’s email highlights the necessity of eliminating duplication of roles and functions amid Tesla’s rapid global expansion. Despite the challenging decision, Musk emphasizes the imperative of maintaining a lean, innovative, and competitive stance for the future.

Tesla’s decision to reduce its workforce follows disappointing vehicle deliveries, marking the company’s first quarterly decline in four years. The layoffs come amidst preparations for increased production at existing plants in Austin and Berlin. As Tesla navigates through these transitions, experts speculate on the impact of slowing output, particularly on the sales of its latest model, the Cybertruck.