Tesla Executes Largest Workforce Reduction, Laying Off 14,000 Employees
Tesla Elon Musk--
Tesla Executes Largest Workforce Reduction, Laying Off 14,000 Employees
Tesla, the electric vehicle company led by Elon Musk, is planning to trim its workforce by tens of thousands of employees. Musk disclosed this plan through a memo addressed to Tesla employees.
According to the memo, Tesla will carry out layoffs affecting around 10 percent of its global workforce.
As of the end of 2023, Tesla's total workforce stood at 140,473 employees. Therefore, the number of employees affected by the layoffs is approximately 14,000.
In his memo, Musk stated that there had been duplication of roles and job functions in certain areas, in line with Tesla's rapid growth.
Musk then mentioned that Tesla is gearing up for its next phase of growth. Consequently, Tesla is considering cost-cutting measures.
"It is crucial to consider every aspect of the company to reduce costs and increase productivity," Musk said in the memo to Tesla employees.
Those affected by the layoffs were notified via email. Since the notification was sent, employees were immediately denied access to the office systems.
Before the announcement, rumors about the layoffs had already circulated among Tesla employees. Some managers had been asked to submit lists of staff names to management.
In February, Tesla also instructed managers to identify which positions were crucial to the business and temporarily postpone performance evaluations.
In terms of numbers, these layoffs represent Tesla's largest workforce reduction yet, especially since the company cut employees at its Buffalo, New York factory in February 2023.
These layoffs also come after Tesla experienced a sharp decline in sales in the early quarters of this year.
This is due to increasing competition worldwide and a slowdown in electric vehicle sales growth. Moreover, price cuts have failed to attract more consumers.
In the January - March 2024 quarter, Tesla stated that it had delivered 386,810 vehicles, a 9 percent decrease compared to the 423,000 vehicles sold in the first quarter of 2023, as reported by APnews on Friday (April 18, 2024).
