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Elon’s Pink Slips: Tesla Announces Layoffs of Over 10% of Global Workforce amid Growth Slowdown
Elon Musk’s Tesla has announced a significant reduction in its global workforce, with layoffs affecting more than 10 percent of its employees.
Electrek reports that in an internal company-wide email, Tesla CEO Elon Musk revealed the decision to cut the company’s headcount by more than 10 percent globally. The move comes as Tesla seeks to streamline operations, reduce costs, and increase productivity.
The layoffs, which could affect at least 14,000 employees based on Tesla’s estimated total workforce of 140,000, are a response to the company’s recent challenges. Tesla experienced a rare year-over-year reduction in sales and significantly missed delivery estimates in the previous quarter, with the main dip seemingly coming from the Chinese market where domestic EV makers are ramping up their presence.
Tesla CEO Elon Musk (C) poses for photos with buyers during the Tesla China-made Model 3 Delivery Ceremony in Shanghai. (Photo by STR/AFP via Getty Images)
In his email, Musk acknowledged the rapid growth Tesla has experienced over the years, with multiple factories scaling around the globe. However, he noted that this growth has led to the duplication of roles and job functions in certain areas. The layoffs are part of a thorough review of the organization to identify cost reduction opportunities and increase efficiency.
Musk expressed his gratitude to the departing employees for their hard work and contributions to Tesla’s mission, recognizing the difficulty of saying goodbye. He also thanked the remaining employees in advance for their resolve in tackling the challenges ahead, emphasizing the importance of their role in developing revolutionary technologies in the automotive, energy, and artificial intelligence sectors.
The layoffs come at a time when many companies in the tech industry are also reducing their workforce, despite industry profits remaining high. Tesla’s move has raised concerns about employee morale and the potential impact on the company’s ability to attract and retain top talent in the future.
Analysts estimate that Tesla will still turn a profit of around 50 cents a share in the upcoming quarterly report, down from 85 cents a share in Q1 2023. The company has previously guided for a “pause” in growth until the release of next-gen vehicles like the $25,000 Model 2, although recent reports suggest a shift in focus towards a robotaxi model.
Read more at Electrek here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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