New Delhi: Leading electric car manufacturer Tesla plans to lay off more than 10% of its workforce globally to offset the losses likely the company may face due to a slowdown in electric vehicle (EV) demand.
According to a US news portal dedicated to electric transportation and sustainable energy, Electrek, Telsa chief executing officer (CEO) Elon Musk has circulated an internal email among his staff members hinting the job cut.
However, Musk said that the layoffs were needed after ‘rapid growth’ that has led to ‘duplication of roles and job functions in certain areas. “There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle,” Musk’s memo added.
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Staff to be laid off
As per the annual report, Tesla had 140,473 employees globally by the end of December 2023. As many as 14,047 staff of the company could be hit if the job cuts become a reality.
Enon Musk mail
In the email to staff, Musk wrote: Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity.
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As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.
I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.
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For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.
Thanks,
Elon
Job cut timing
Timing of the lay off is important as it came about 10 days after the company reported a drop in first-quarter auto deliveries in a report. The company late last year began deliveries of the Cybertruck, a space age-inspired vehicle that Musk has effused over while warning that it would take time to ramp production to reach profitability. Shares of Tesla fell 0.4% in pre-market trading.
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Tesla to start production in India
Tesla is looking at the southern state of Tamil Nadu, Maharashtra in the west, and Gujarat, the home state of Prime Minister Narendra Modi, for its factory, which it expects to build in two years, two of the sources said. India’s EV market, small but growing, is dominated by domestic carmaker Tata Motors.
