Tesla to cut workers by 10% ‘to be lean and innovative’
ELECTRIC car maker Tesla is gearing up to slash at least 14,000 staff amid a sales slowdown.
Reports say the US giant, led by billionaire Elon Musk, aims to axe one in 10 workers worldwide. It is not yet known where the cuts will take place.
Mr Musk told employees in a leaked memo: “We have done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10% globally.”
He added: “There is nothing I hate more, but it must be done.”
The email was first reported by industry publication Electrek.
The cuts come amid falling sales of electric vehicles globally, with supply chain firms in South Korea to Germany already making cuts.
Tesla is especially exposed as, unlike other manufacturers, it only makes electric cars. Shares in the company have fallen more than 30% this year.
Some staff in California and Texas have already been notified of layoffs, a source told Reuters. Mr Musk’s memo went on:
“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.”
The layoffs follow a Reuters report on April 5 that claimed Tesla had cancelled a long-promised cheaper car expected to cost £20,000, which investors have been counting on to drive mass market growth. Musk had said the car, known as the Model 2, would start production in late 2025.
The tycoon posted “Reuters is lying” on X, without detailing inaccuracies.