Tesla has said it will lay off 10 percent of its global workforce due to the fall in demand for electric vehicles (EV).
Elon Musk, chief executive officer of Telsa, disclosed this in a recent memo sent to the company’s staff, noting that the reasons for the layoffs are the duplication of roles and the reduction of costs.
Read also: Elon Musk of Tesla routinely took illegal drugs and his fellow directors knew says new press reports
“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 wrote. “As part of this effort, we have done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10 percent globally. There is nothing I hate more, but it must be done.”
Responding to a comment on the planned layoff on X, Musk stated that every five years, the company needs to reorganise and streamline for its next phase of growth.
The CEO also added that the dismissal would amount to more than 14,000 employees. Tesla had 140,473 employees as of the end of 2023, according to Layoffs.fyi. This decision to sack workers comes as the carmaker faces declining sales and an intensifying price war for EVs.
Musk noted in his memo that Telsa missed expectations for car deliveries this month by a wide margin — posting its first quarterly decline in four years.
