Tesla layoffs: Elon Musk’s company to cut more than 10% of its global workforce

Tesla layoffs: Tesla will reduce global headcount by more than 10% amid a slowdown in electric vehicle demand, Electrek reported citing company’s CEO Elon Musk who said in an email sent to staff that job cuts will take place due to “duplication of roles and job functions in certain areas”.

What Elon Musk told employees regarding job cuts?

In an email to the staff, Elon Musk wrote, “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.”

How many employees could be affected?

Tesla ended last year with 140,473 employees- double its total three years earlier. The company has been ramping up output at two plants- Austin and outside Berlin. If the job cuts apply company-wide, the dismissal could affect at least 14,000 employees.

What we know about company’s vehicle deliveries

The layoff reports comes after Tesla reported disastrous vehicle deliveries early this month as it missed expectations by a wide margin. The company posted its first quarterly decline in four years as experts believed that the EV maker’s sales could potentially shrink for the year as it slowed output of its newest model — the Cybertruck.

What CFO said in recent earnings calls

Chief Financial Officer Vaibhav Taneja said during Tesla’s recent earnings call in January, “We just have to chase down every penny possible. We have a strong team which is hyper-focused on this.”

When were major job cuts announced at Tesla before?

Tesla eliminated about 10% of salaried workers in mid-2022, Bloomberg reported.