Elon Musk’s Tesla lays off 14,000 global positions amid slowdown in EV demand: ‘This will enable us…’

The layoffs were needed after “rapid growth” that has led to “duplication of roles and job functions in certain areas”, the Tesla CEO said in the internal email to staff, Electrek reported.

“There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle,” Musk’s memo added.

Tesla Layoff: Number of employees to be affected

Tesla had 140,473 employees globally as of December 2023, its latest annual report shows. If the job cuts apply company-wide, the layoff could affect at least 14,047 employees.

Here is the full text of the email, which leaked soon after it was mailed by Elon Musk.  (Mail text as reported by Electrek)

Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been 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.

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. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.

I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.

Thanks,

Elon  

It is important to note that the move comes about 10 days after the company reported a drop in first-quarter auto deliveries in a report.

The company late last year began deliveries of the Cybertruck, a space age-inspired vehicle that Musk has effused over while warning that it would take time to ramp production to reach profitability.

Shares of Tesla fell 0.4% in pre-market trading. 

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Published: 15 Apr 2024, 07:29 PM IST