- Tesla is cutting its workforce by more than 10%, according to an internal memo obtained by Business Insider.
- Earlier this month, Tesla’s car deliveries fell short of Wall Street expectations.
- The automaker employs more than 140,000 people worldwide.
Tesla is the latest major company to lay off employees.
the company is excluding That’s “more than 10%” of the global workforce, according to an internal memo sent by Elon Musk on Sunday seen by Business Insider. The job cuts come shortly after the automaker announced lackluster vehicle deliveries.
“There’s nothing we hate more, but it has to be done, so we can be lean, innovative, and greedy for the next growth cycle,” Musk said in an email. You can do it,” he wrote.
By Monday, some Tesla employees had lost access to email and Teams, according to two people familiar with the matter.
Tesla’s first-quarter deliveries revealed a sharp decline, below Wall Street expectations. Tesla vehicle deliveries in the first quarter were down 20% from the previous quarter and more than 8% from the same period last year, and the company’s sales fell year-over-year for the first time since 2020.
In a press release, Tesla blamed the decrease on deliveries while ramping up production. Refreshed model 3, arson Problems at a factory near Berlin, supply chain problems caused by the Red Sea conflict.
Rumors have been circulating in recent months that layoffs are on the horizon. During February, reported by bloomberg The automaker asked managers to start identifying the roles most important to the company. Tesla also delayed performance reviews for some employees at the time, Bloomberg reported. Three sources told BI that the review was later rescheduled.
A Tesla spokesperson did not respond to a request for comment.
Before Tesla cut staff, 140,000 workers It is sold worldwide, including 20,000 units at the Fremont, California, factory.
Tesla CEO Elon Musk has a history of cutting staff to cut costs. The billionaire famously cut Twitter’s workforce in half after acquiring it in 2022. Tesla has also cut its workforce several times.
Last year, Tesla laid off dozens of employees who worked on its Autopilot service at one of its locations in Buffalo, New York. At the time, the company said the layoffs were unrelated to the union movement at the facility announced the previous week. The company announced that it had fired employees due to poor business performance.
Tesla appears to have slowed hiring last year. Musk told staff in May that he must personally approve all new Tesla hires.
During Tesla’s January earnings call, Musk warned of a sales slowdown in 2024, saying the company is “between two big waves of growth.”
Over the past year, the company has continually lowered vehicle prices and ventured into advertising for the first time in the company’s history. Tesla also faces increased competition from Chinese automakers.
Musk also warned that Tesla could face production hurdles next year as it seeks to scale up production of the Cybertruck and Tesla’s next-generation vehicle platform.
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