Tesla Laying Off Over 10% of Its Workers: ‘It Must Be Done’


Tesla is going to lay off over more than 10 percent of its global workforce, CEO Elon Musk told staff in an internal memo Monday, as the world’s largest automaker battles declining sales and a grinding price war for electric vehicles.

The company had 140,473 employees as of December 2023, according to its latest annual report, meaning the cuts will affect at least 14,000 roles worldwide. Musk told workers that Tesla had expanded rapidly in recent years, leading to “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 look at every aspect of the company for cost reductions and increasing productivity,” Musk’s memo read, according to Electrek. “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% globally.”

“There is nothing I hate more, but it must be done,” Musk continued. “This will enable us to be lean, innovative and hungry for the next growth phase cycle.” He went on to thank “everyone who is departing Tesla for their hard work over the years” and said it’s “very difficult to say goodbye.”

Some workers in Texas and California have already been notified about layoffs, a source told Reuters. One employee who has been informed that they’re being let go told the BBC that he’s been locked out of his email account along with everyone else who has been laid off.

The massive cuts come after Tesla reported earlier this month that its global vehicle deliveries fell for the first time in almost four years during the three months ending March 31. It also scaled back production at its Gigafactory in Shanghai last month, according to Bloomberg, and last week reportedly notified staff working on the Cybertruck at its Austin plant that production line shifts will be shorter.

Tesla’s layoffs come amid slowing global demand for EVs, with other automakers also announcing recent cuts or delays to EV projects.

In his memo, Musk thanked “those remaining” in advance for “the difficult job that remains ahead.” “We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence,” he wrote. “As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.”

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