Tesla Announces Mass Layoffs

In a memo obtained by CNBC, Elon Musk announced Tesla will lay off approximately 10% of its global workforce.

“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,” Musk said in the memo, according to CNBC.

“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,” the memo continued.

As of December 2023, Tesla employed 140,473 people.

Updated: CEO Elon Musk says Tesla will layoff more than 10% of its global workforce: ‘Nothing I hate more’ https://t.co/2ja2VS3R1h

— John Solomon (@jsolomonReports) April 15, 2024

Per CNBC:

Tesla shares have taken a bruising in recent months, falling 31% year to date. While electric vehicle sales are still gaining popularity worldwide, their sales growth rate has slowed especially for Tesla. The company now faces more competition than ever.

To end 2023, China’s BYD temporarily dethroned Tesla as the world’s top EV maker. Chinese smartphone company Xiaomi in March said it would sell its first electric car for far less than Tesla’s Model 3.

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Musk has previously recognized that China, home to a large Tesla factory, may also house the company’s strongest competition. “There’s a lot of people who are out there who think that the top 10 car companies are going to be Tesla followed by nine Chinese car companies. I think they might not be wrong,” Musk said in November.

“Tesla has 140,473 employees globally as of December 2023, so a 10% reduction will be ~14k+ jobs lost,” Car Dealership Guy noted.

The once unthinkable has happened as Tesla prepares for mass layoffs.

Internal Tesla memo from Elon shows that Tesla will reduce its global headcount by more than 10%.

Tesla has 140,473 employees globally as of December 2023, so a 10% reduction will be ~14k+ jobs lost.

Bottom…

— Car Dealership Guy (@GuyDealership) April 15, 2024

BREAKING:

*TESLA ANNOUNCES ITS LARGEST-EVER LAYOFFS, CUTTING 15,000 JOBS, ACCORDING TO AN INTERNAL MEMO$TSLA pic.twitter.com/Q98DdULGvG

— Investing.com (@Investingcom) April 15, 2024

From Electrek:

For the last few months, it has looked like Tesla might be preparing for a round of layoffs. Tesla told managers to identify critical team members, and paused some stock rewards while canceling some employees’ annual reviews. It also reduced production at Gigafactory Shanghai.

Then, over the weekend, we heard rumors that these layoffs were about to happen, which came to us from multiple independent sources, as we reported on yesterday. The rumors indicated that layoffs could be as high as 20%, and in addition we heard that Tesla would shorten Cybertruck production shifts at Gigafactory Texas (despite CEO Elon Musk’s recent insistence that Cybertruck is currently production constrained).

Now those rumors have been confirmed – though with a lower number – in a company-wide email sent by Musk, which leaked soon after it was sent.

WATCH:

Electrek shared the full text of the memo:

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

This is a Guest Post from our friends over at 100 Percent Fed Up.

View the original article here.