Tesla to Cut 14,000 Jobs, 10% of Workforce, as Sales Decline

Apr 15, 2024, 01:05 PM

Tesla Inc. is set to lay off more than 10% of its global workforce, amounting to approximately 14,000 employees, as part of a broader strategy to address falling sales and an intensifying price war in the electric vehicle market. This decision, disclosed through various internal memos and reports, reflects the company's efforts to streamline operations and reduce costs amid a challenging economic environment for the electric vehicle industry. CEO Elon Musk, in a memo sent on Monday, communicated the need for these layoffs to prepare the company for future growth and cost optimization, stating 'It must be done'. Tesla's global headcount was 140,473 as of December 2023.