According to media outlet Eletrek and internal sources today (4/15), Tesla CEO Elon Musk has announced in an internal memo that the company will be laying off 10% of its workforce. The contents of the memo are as follows (note: not yet confirmed):
“Over the years, we have grown rapidly and have multiple factories worldwide. With this rapid growth, there has been duplication of roles and job functions in certain areas. As we prepare for the next phase of our company’s growth, it is crucial to review all aspects of the company to reduce costs and increase productivity.
As part of this effort, we have conducted a thorough review of the organization and have made the difficult decision to reduce our global workforce by more than 10%. There is nothing more difficult than this, but it is necessary. This will allow us to be lean, innovative, and eager to enter the next growth cycle.
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I want to thank all those who have left Tesla and appreciate their hard work over the years. I am incredibly grateful for your many contributions to our mission and wish you all the best in your future opportunities. It’s hard to say goodbye.
For those who remain, I want to thank you in advance for the challenging work you continue to do. We are developing some of the most revolutionary technologies in the automotive, energy, and artificial intelligence fields. Your determination will have a tremendous impact as we prepare for the next phase of our company’s growth.
Thank you,
Elon”
As Tesla has around 140,000 employees, the 10% reduction will result in 14,000 people losing their jobs.
Previously, Tesla’s quarterly delivery report performed poorly, significantly falling behind delivery expectations and experiencing a rare year-on-year decline in sales. Although Tesla’s report did not break down sales by geographic region, the major decline appears to be from China, as domestic and export markets for Chinese electric vehicle manufacturers are rapidly growing.
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