Tesla to slash more than 10 percent of global workforce: report

File picture: Fang Zhe / Xinhua via AFP.

File picture: Fang Zhe / Xinhua via AFP.

Published Apr 15, 2024


Tesla plans to lay off "more than 10 percent" of its global workforce, news site Electrek reported on Monday, publishing an email from Chief Executive Elon Musk announcing the cuts.

The job cuts were needed after "rapid growth" that has led to duplication of roles, Musk said in the email to staff, according to Electrek, an online news site focused on electric vehicles (EV).

"There is nothing I hate more, but it must be done," Musk said. "This will enable us to be lean, innovative and hungry for the next growth phase cycle."

The move comes about 10 days after Tesla reported an 8.5 percent drop in first-quarter vehicle deliveries in a report that disappointed investors.

The auto giant reported 386,810 deliveries over the period, reflecting in part a weak sales market in China, where it faces heavy competition from local EV makers.

At the same time, an increase in EVs in other markets including the United States has led Tesla to enact price cuts, dimming the company's profit outlook.

Websush analyst Dan Ives described the Q1 performance as an unmitigated disaster.

"We view this as a seminal moment in the Tesla story for Musk to either turn this around and reverse the black eye Q1 performance. Otherwise, some darker days could clearly be ahead that could disrupt the long-term Tesla narrative."

Tesla 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 percent in pre-market trading.