Tesla Laying Off Over 10% of Its Workers: ‘It Must Be Done’
Tesla is going to lay off over more than 10 percent of its global workforce, CEO Elon Musk told staff in an internal memo Monday, as the world’s largest automaker battles declining sales and a grinding price war for electric vehicles.
The company had 140,473 employees as of December 2023, according to its latest annual report, meaning the cuts will affect at least 14,000 roles worldwide. Musk told workers that Tesla had expanded rapidly in recent years, leading to “duplication of roles and job functions in certain areas.”
“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’s memo read, according to Electrek. “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.”