Written by by LUCAS NOLAN at breitbart.com
Elon Musk’s Tesla has announced a significant reduction in its global workforce, with layoffs affecting more than 10 percent of its employees.
Electrek reports that in an internal company-wide email, Tesla CEO Elon Musk revealed the decision to cut the company’s headcount by more than 10 percent globally. The move comes as Tesla seeks to streamline operations, reduce costs, and increase productivity.
The layoffs, which could affect at least 14,000 employees based on Tesla’s estimated total workforce of 140,000, are a response to the company’s recent challenges. Tesla experienced a rare year-over-year reduction in sales and significantly missed delivery estimates in the previous quarter, with the main dip seemingly coming from the Chinese market where domestic EV makers are ramping up their presence.
In his email, Musk acknowledged the rapid growth Tesla has experienced over the years, with multiple factories scaling around the globe. However, he noted that this growth has led to the duplication of roles and job functions in certain areas. The layoffs are part of a thorough review of the organization to identify cost reduction opportunities and increase efficiency.
Musk expressed his gratitude to the departing employees for their hard work and contributions to Tesla’s mission, recognizing the difficulty of saying goodbye. He also thanked the remaining employees in advance for their resolve in tackling the challenges ahead, emphasizing the importance of their role in developing revolutionary technologies in the automotive, energy, and artificial intelligence sectors.