Tesla cuts 'more than 10 percent' of workforce globally – E24

Tesla cuts 'more than 10 percent' of workforce globally – E24

This is what Elon Musk wrote in an email to employees, according to Bloomberg News.


There has been speculation for months that automaker Tesla will cut business years in the future.

Bloomberg has now accessed an email from Tesla CEO Elon Musk to the company's employees, in which he wrote that 10 percent of the workforce would be cut globally.

He points out that Tesla has grown strongly in recent years, meaning that in some areas there were twice as many positions.

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– As we prepare the company for the next stage of growth, it is extremely important to consider every part of the company to reduce costs and increase productivity, Musk wrote in the email, according to Bloomberg.

As part of this effort, we conducted a review of the organization and made the difficult decision to reduce the number of people by more than 10 percent globally.

Tesla ended 2023 with 140,473 employees, nearly double the number it had three years ago, Bloomberg reported.

More than 10 percent of the workforce corresponds to at least 14,000 Tesla employees.

Heavy quarter

The electric vehicle giant disappointed in the fourth quarter and was punished on the stock market. The company's sales reached $25.2 billion in the fourth quarter, equivalent to 264 billion kroner. It was less than previously expected.

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Otherwise, Tesla has had a tough start to 2024. Several bad news have given the electric car manufacturer its worst start to a new year since 2016.

Tesla's share is down 31.14 percent so far this year.

Sales decline

In the first quarter, Tesla delivered 8.5 percent fewer vehicles than the same time last year.

The decline is due in part to the early stage of production ramp-ups for the Model 3 in Fremont, the electric vehicle company wrote in a press release. There is also reference to the closure of factories, following the diversion of shipping as a result of the conflict in the Red Sea.

Additionally, Tesla wrote that an alleged arson at the Berlin factory contributed.

Tesla also ended production declines to 433,371 vehicles in the quarter from 440,808 at the same time last year.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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