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Tesla to Lay Off Over 14,000 Employees, Stock Drops 2% Amid EV Sales Decline

Apr 15, 2024, 01:51 PM

Tesla Inc. is set to lay off more than 10% of its global workforce, amounting to approximately 14,000 employees, as it faces a decline in electric vehicle demand and sales. The layoffs were announced through an internal memo by CEO Elon Musk, which was reported by multiple news outlets including Electrek and Reuters. The company's decision is attributed to a slowdown in the electric vehicle market and a need to reduce costs and enhance productivity. Tesla's stock also experienced a downturn, with shares dropping by about 2% in premarket trading following the announcement. Tesla's workforce grew by 10% in FY23 and nearly doubled since FY20, with a headcount of about 140,000 at the end of last year.