East Africa News Post

Complete News World

Tesla intends to lay off more than 10% of its workforce around the world

Tesla intends to lay off more than 10% of its workforce around the world

(Bloomberg) — Tesla will cut its global workforce by more than 10%, she wrote. Elon Musk In an email to employees, the automaker faces a slowdown in demand for electric vehicles.

In the memo seen by Bloomberg News, the CEO cited duplication of functions and the need to cut costs as reasons for the cuts, which, if implemented company-wide, would amount to More than 14,000 employees.

Tesla announced vehicle deliveries earlier this month that far exceeded expectations and recorded its first quarterly decline in four years. Many analysts are preparing for the possibility of a decline in the electric vehicle manufacturer's sales on an annual basis, pointing to the slow production of its latest model – the Cybertruck – and a temporary halt in new products until the company begins producing the next generation of electric vehicles at the end of next year.

“As we prepare the company for the next phase of growth, “It is extremely important to analyze all aspects of the business to reduce costs and increase productivity,” Musk wrote in the email. “As part of this effort, we conducted a comprehensive review of the organization and made the difficult decision to reduce our workforce by more than 10% globally. There is nothing I hate more, but it has to be done.

Tesla ended last year with 140,473 employees, nearly double the total number three years ago. It has ramped up production at two plants, one in Austin and one outside Berlin, that began producing Model Y SUVs in early 2022. The company has begun cutting prices across its portfolio as those facilities reach higher volumes.

See also  Stocks plunged on Wall Street after the revelation of Joe Biden's plan to double the capital gains tax

“Over the years, we have grown rapidly with multiple factories around the world,” Musk wrote in the email previously reported by Electrek Blog. “With this rapid growth, there has been a duplication of job roles and functions in certain areas.”

In the previous major workforce reduction, in mid-2022, Tesla cut about 10% of salaried workers.

Tesla shares are down 31% this year, ranking as the worst performer in the S&P 500.

You may also be interested | On video: Musk sets Tesla's Robotaxi presentation date for August


Translated by Paulina Stevens.

Original note: Tesla intends to reduce more than 10% of the workforce in light of the global reduction (1)

More content in Spanish:

  • Bloomberg in Spanish on YouTube

  • Follow us on X at @BBGenEspanol

  • Get to know our WhatsApp channel

©2024 Bloomberg L.P