Tesla’s Gearing Up to Cut Over 10% of Its Global Crew

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Tesla to cut more than 10% of global workforce

Tesla is to cut more than a tenth of its workforce worldwide, equivalent to an estimated 14,000 employees, the Electrek tech publication reported on Monday, citing an internal email from Tesla boss Elon Musk, said dpa.

As part of efforts to cut costs and increase productivity, "we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally," Musk writes, according to the email cited by Electrek.

Tesla's staff complement stood at more than 140,000 at the end of last year, according to its annual report.

Tesla surprised analysts by reporting a dip in sales in the first quarter, when it sold almost 387,000 vehicles, down from last year's figure by more than 8%.

US customers are buying cars powered by combustion engines or hybrids, and in China Tesla is experiencing competition from domestic manufacturers.

Attacks by Yemen-based Houthi rebels on shipping through the Red Sea has caused supply problems for production at Tesla's large Grünheide plant near Berlin. The plant was also hit by sabotage to its electric power supply earlier this year.

German business daily Handelsblatt reported that Grünheide would be affected by the jobs cut, with some 3,000 of the labour force of 12,500 let go. It cited internal Tesla sources.

According to the email from Musk cited by Electrek, rapid growth has led to a "duplication of roles and job functions in certain areas."

"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," Musk wrote.

Source: www.dailyfinland.fi

  1. Emily89 says

    In my opinion, it’s disappointing to hear about Tesla cutting more than 10% of its global workforce. It’s crucial for companies to prioritize their employees, especially during challenging times like these. I hope Tesla can navigate through this period of change with compassion and a focus on supporting those affected.

  2. Emily123 says

    It’s unfortunate to hear about Tesla cutting over 10% of its global workforce. The company’s decision to reduce headcount highlights the challenges they are facing in terms of cost-cutting and increased productivity. Let’s hope this restructuring leads to positive outcomes for Tesla and its employees in the long run.

  3. EmilySays says

    It’s disappointing to hear that Tesla is cutting such a large portion of its workforce. The company needs to find a balance between growth and sustainability without compromising its employees’ livelihoods.

  4. Emily_Rose says

    It’s truly unfortunate to see such a significant workforce reduction at Tesla. The company’s decision to cut over 10% of its employees globally is a tough blow, especially considering the challenges it faces with sales figures and supply chain disruptions. Let’s hope this restructuring leads to the desired cost savings and increased productivity for Tesla in the long run.

  5. AlexaSmith says

    It’s unfortunate to hear that Tesla is cutting over 10% of its workforce. The company needs to streamline operations and focus on sustainable growth in this challenging market.

  6. Sarah87 says

    It’s truly sad to hear about the planned lay-offs at Tesla. Hopefully, they can find a way to navigate through these challenges and emerge stronger. My thoughts are with all those affected by this decision.

  7. Emily1995 says

    Tesla’s decision to cut over 10% of its global workforce seems like a necessary step to improve efficiency and streamline operations. It’s always tough when companies have to downsize, but hopefully, it will help Tesla overcome its current challenges and maintain its position as a leader in the electric vehicle market.

  8. Emily1995 says

    Will this job cut affect the company’s ability to innovate and develop new technologies?

    1. MaxJohnson89 says

      Yes, Emily1995, the job cuts at Tesla may impact the company’s capacity to innovate and advance in new technologies. With a significant reduction in workforce, there could be challenges in maintaining the same level of research and development activities that drive innovation. It remains to be seen how Tesla will navigate through this restructuring while aiming to stay at the forefront of technological advancements in the automotive industry.

  9. Chris92 says

    It’s unfortunate to hear about the job cuts at Tesla. I believe that maintaining a loyal and skilled workforce is crucial for a company’s long-term success. Hopefully, this tough decision will ultimately lead to greater stability and growth for the company.

  10. Ava_Writes says

    It’s always tough to hear about layoffs, but sometimes restructuring is necessary for a company’s survival. Hopefully, this move will help Tesla become more efficient and overcome its current challenges.

  11. EmilySmith says

    It’s a tough decision, but I believe Tesla needs to streamline its operations to stay competitive in the market. Cutting jobs is never easy, but sometimes necessary for the company’s long-term growth.

  12. EmilySmith1987 says

    It’s unfortunate that Tesla is cutting such a significant portion of its workforce. The rapid growth and competition challenges they are facing seem to have led to this decision. Let’s hope it ultimately helps the company become more efficient and sustainable in the long run.

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