Heaptalk, Jakarta — Electric car manufacturer Tesla is making a significant cut, axing 10% of its global employees, as Reuters reported. This measure is taken due to the struggle with dropping sales and an intensifying price war for EVs.
Based on filings with US regulators, the figure could mean approximately 14,000 employees, a significant number considering the workforce grew from around 100,000 in late 2021 to more than 140,000 in late 2023. This underscores the magnitude of the restructuring process.
Tesla CEO Elon Musk emphasized that the layoffs are part of a strategic effort to reorganize and streamline the company for the next growth phase. “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. 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,” stated Elon Musk in a memo for his staff, as quoted by Reuters (04/15).
Previously, Electrek reported that Tesla released a bad quarterly delivery report in which the company significantly missed delivery estimates and had a rare year-over-year reduction in sales. While Tesla does not break down sales by geographic region, Electrek expects the most significant decline to occur in China, where Chinese EV makers are rapidly growing in the domestic and export markets.
