Tesla to Cut Over 10% of Workforce
Reports indicate that Tesla is planning to lay off more than 10% of its employees due to a sales slump that started earlier this year.
With 140,473 employees as of December 2023, this move could result in at least 14,000 job cuts by the end of the year. The news was first reported by Electrek.
Following the announcement, Tesla's shares dropped nearly 3% in Monday morning trading.
In a memo, Elon Musk stated, "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."
The memo did not specify the departments affected or the timeline for the layoffs, but mentioned a need to address duplication of roles and functions resulting from the company's rapid expansion.
"In preparation for the next phase of growth, the company is taking a close look at every aspect of operations to reduce costs and increase productivity," the internal memo stated.
These impending layoffs coincide with Tesla's recent announcement of a significant decline in sales during Q1, attributed to heightened competition in the global electric vehicle market and the lackluster impact of price reductions implemented by the company several months ago.
Tesla has not yet responded to CBS MoneyWatch's request for comment.
