Several reports have announced that Tesla is set to lay off more than 10 percent of its global workforce. In an internal company email, Elon Musk, Tesla’s chief, stated:
“Over the years, we have grown rapidly, with multiple factories scaling around the globe. With this rapid growth, there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to examine every aspect of the company for cost reductions and increased 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 per cent globally. 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
I want to thank everyone departing Tesla for their hard work. I’m deeply grateful for your many contributions to our mission, and we wish you well in your future opportunities. It is very difficult to say goodbye.
For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next growth phase, your resolve will make a huge difference in getting us there.
Thanks,
Elon”
For several months now, Tesla seems to have been preparing for a round of layoffs. The electric car maker’s managers identified critical team members, and the stock rewards were paused while dancing a few employees’ annual reviews. The company also reduced production at Gigafactory Shanghai.
There was also talk of Tesla shortening Cybertruck production shifts at Gigafactory Texas, and a few employees were already locked out of system access.
The news comes after a bad quarterly report delivery, where Tesla missed delivery estimates and had a rare year-over-year reduction in sales. Tesla will deliver its quarterly profits report next Tuesday, April 23. Analysts estimate that Tesla will still profit around 50 cents a share, down from 85 cents a share in Q1 2023.
