Mass layoffs: Elon Musk's Tesla to fire around 14,000 employees
Mass layoffs: Tesla plans to slash its global workforce by over 10 percent in response to a decline in the electric vehicle demand, according to Electrek.
According to reports, Elon Musk, the company's CEO, has sent an email to employees informing them of the layoffs, which will affect more than 10% of the Tesla workforce. While the exact number is currently unknown, Electrek estimates that there are approximately 14,000 employees.
This news is surprising given that Musk was recently reported to be planning a pay rise for Tesla engineers in order to keep them from being lured away by higher-paying salary offers from OpenAI.
According to the email, the latest round of layoffs will help Tesla reduce costs while increasing productivity. Musk claims that the decision is difficult, but it is also necessary to plan for the next growth phase cycle.
"Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth, there has been 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," Elon Musk said.
"As part of this effort, we have done a thorough review of the organisation 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. This will enable us to be lean, innovative and hungry for the next growth phase cycle."
- With inputs from agencies
