Tesla Layoffs 10% of its Global Workforce
$Tesla (TSLA.US)$ Elon Musk has announced that Tesla will lay off over 10% of its global workforce due to overlaps in job roles and functions as the company has expanded rapidly, communicated through an internal memo. As of December 2023, Tesla had 140,473 employees.
Affected employees received emails in their personal accounts late Sunday night, informing them that they were no longer required to work and would be cut off from accessing Tesla’s systems and facilities effective immediately.
Operational difficulties have also plagued Tesla, including supply chain disruptions linked to maritime attacks in the Red Sea and a temporary production halt at its Berlin gigafactory due to suspected arson.
This decision marks Tesla's first significant workforce reduction since a previous round of layoffs at its Buffalo, New York plant in February 2023. During that time, there were allegations from the Workers United union that the layoffs were in retaliation for union activities, which Tesla denied, attributing the layoffs to poor performance instead.
This recent decision comes amidst a broader context of slowing demand for Tesla's electric vehicles (EVs), with the company’s stock declining over 31% since the start of the year. Tesla is set to release its next earnings report on April 23.
Here’s the memo sent by Elon Musk:
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