Musk’s Tesla lays off 10% of its workforce

Tesla employees have received a memo from the company’s owner, Elon Musk, saying that 10% of the workforce must go, meaning that around 14,000 people will lose their jobs.

The electric vehicle maker’s employees received the memo from Musk in which the billionaire quotes cost reduction and role duplication as key drivers behind the decision to cut staff.

“We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” reads Musk’s memo, shared by Tesla employees on Reddit and X.

According to Reuters, some staff have already been notified of layoffs.

The company ended 2023 with staff numbers a little over 140,000, which points to the company’s downsizing affecting at least 14,000 employees. It’s unclear which locations and departments will be impacted.

Tesla had previously laid off 4% of its workforce in New York in February last year.

Musk's EV maker is the world‘s largest automaker by market value. However, the company‘s stock value has fallen by nearly a third this year.

The planned job cuts come after the company reported that its global vehicle deliveries in the first quarter fell for the first time in nearly four years.

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