Tesla will cut more than 10% of its workforce worldwideequal to approximately 14 thousand employees. The US technology publication Electrek reports this, citing an internal email from the group’s owner Elon Musk.
As part of efforts to cut costs and increase productivity, “we did a thorough review of the organization and took the difficult decision to reduce our headcount by more than 10% globally“, writes Musk, according to the email cited by Electrek. According to the annual report, at the end of last year Tesla had more than 140,000 employees. Tesla surprised analysts by reporting a first-quarter sales decline of 8% on year, stopping sales at around 387 thousand vehicles.
Attacks by Yemen’s Houthi rebels on ships crossing the Red Sea also have an impact, causing supply problems for the production of the Tesla plant in Grünheide, near Berlin. At the beginning of the year the plant was also affected by sabotage of the electricity supply. According to Musk’s email cited by Electrek, the rapid growth has led to a “duplication of job roles and functions in some areas.” “There is nothing I hate more, but it needs to be done. This will allow us to be lean, innovative, and hungry for the next growth cycle,” Musk wrote.
