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Tesla is set to lay off 'more than ten percent' of its global workforce as part of CEO Elon Musk's efforts to prepare the company for the 'next growth phase'. The announcement came in an email Musk sent to employees of the electric vehicle manufacturer reporting both on Electrek and Reuters agency. With an estimated 140,000 employees at the end of 2023, the layoff could affect at least 14,000 individuals, although specific details on which job groups or regions will be impacted remain unknown.
The decision to downsize comes after Tesla reported delivering 20 percent fewer cars in the first quarter of 2024 compared to the previous quarter of 2023, with the Cybertruck in particular underperforming.
Additionally, the company faces heightened competition from Chinese automakers entering the market with more affordable electric vehicles. Tesla's plans for a cheaper electric vehicle have been scrapped, further complicating efforts to attract new customers.
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