Last Updated on April 15, 2024 by Silvy
Tesla to cut more than 10% workforce, report claims
Electric carmaker Tesla is reportedly implementing a significant workforce reduction, affecting over 10% of its global employees. This translates to roughly 14,000 positions, based on Tesla’s reported headcount.
In an internal memo, CEO Elon Musk acknowledged the difficulty of the decision, citing a need to streamline operations.
He stated the goal is to achieve a “leaner, more innovative, and hungrier” workforce for the company’s next growth phase.
Tesla has reportedly abandoned plans to launch a cheaper electric car; instead, the company is preparing to unveil a Tesla Robotaxi in August.
This move comes amidst a challenging first quarter for Tesla. The company missed market expectations for vehicle deliveries, marking its first decline in nearly four years.
While unforeseen disruptions like attacks on shipping routes and a factory fire were mentioned as contributing factors, the figures also suggest softening global demand.
Tesla joins other companies in the electric vehicle space making adjustments. BP recently downsized its electric vehicle charging division, reflecting a strategic shift after their initial growth projections failed to materialize.
It remains to be seen how this restructuring will impact Tesla’s future performance.
