Tesla to Cut Over 10 Percent of Global Workforce

Following a drop in deliveries in the first quarter of 2024, and with the growth in EV demand slowing considerably, Tesla is planning to slash its global workforce by more than 10 percent.

CEO Elon Musk warned employees in a company email that has since surfaced online.

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“We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally, Musk wrote in the email. “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 explained that the company’s rapid growth in recent years came with a duplication of roles and job functions in certain areas, hence the need to let go of many employees.

At the end of 2023, Tesla employed just over 140,000 people according to Bloomberg, nearly double the number in 2020. That means the layoffs could top 14,000.

By the way, Tesla’s stock has fallen 31 percent so far this year.

“For those remaining, I would like to thank you in advance for the difficult job that remains ahead,” Musk wrote. “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.”