Tesla is preparing to cut its staff. The American manufacturer plans to cut more than 10% of its workforce worldwide, according to an internal note consulted by Reuters. A reaction to a slowdown in demand for its electric vehicles in an increasingly competitive market.
“As we prepare the company for our next phase of growth, it is extremely important to examine all aspects of the group to reduce costs and increase productivity,” Tesla CEO Elon Musk said in the memo.
“As part of this effort, we conducted a comprehensive organizational review and made the difficult decision to reduce our workforce by more than 10% globally.” Tesla did not immediately respond to a request for comment sent by Reuters.
“Reduce costs and increase productivity”
According to its latest annual report, Tesla had 140,473 employees worldwide in December 2023. The note does not specify the exact number of positions affected by the cuts, nor the geographical distribution, although the manufacturer has production centers in the United States, but also in Europe. with a factory near Berlin and in China.
The automaker, which will report its quarterly results on April 23, reported earlier this month a drop in vehicle deliveries in the first quarter, the first in nearly four years. In the first quarter, Tesla reported having delivered 386,810 vehicles, a decrease of 8.5% compared to the first three months of 2023.
The company also abandoned its affordable car project that investors were banking on to support its growth, several sources told Reuters. Elon Musk, however, immediately denied this information in a tweet stating that the press agency was “lying (again).”
Tesla shares fell 3% in early trading after the stock market opened, following the news of these planned job cuts, initially reported by the specialized site Electrek.
Source: BFM TV
