Tesla Chief Executive Officer Elon Musk has informed employees of the company’s decision to reduce its workforce by 10%, amounting to approximately 14,000 jobs worldwide.
Elon Musk emphasised the need for the action in a memo to all employees, highlighting its importance in improving Tesla’s operations and setting the stage for future expansion.
Tesla’s boss revealed the “difficult decision” in a memo initially disclosed by Elektrek.
With Tesla’s workforce numbering 140,473 according to its annual report, Mr Musk described the job reductions, stating, “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.”
The announcement coincided with a decline in Tesla‘s shares on Monday morning.
The company, slated to report its quarterly earnings on April 23, experienced a dip in vehicle deliveries during the first quarter, marking its first decline in nearly four years and falling below market expectations.
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