Tesla is preparing to lay off around 14 thousand employees. This was communicated by the CEO and founder of the company, Elon Musk, in an internal communication. « We have carried out a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally, » wrote the entrepreneur. Since Tesla’s workforce amounted to over 140 thousand employees at the end of 2023, the cut plan should affect around 14 thousand people.
The goal of reducing costs
The disappointing sales data in fact seem to confirm the fears of the experts who indicate the many clouds that are gathering over the manufacturer: from the growing competition in China to the slowdown in sales of electric cars, from production difficulties to the growing hostility of some consumers towards the controversial entrepreneur. Hence Musk’s decision to take drastic decisions. “As we prepare the company for our next phase of growth, it is extremely important to examine every aspect of the company to reduce costs and increase productivity,” he remarked in the document sent to employees.
The next investments
In Musk’s intentions, reducing personnel costs should allow Tesla to respond to competition on Chinese house prices and invest in future technologies, without sacrificing profits. The plan “will allow us to be lean, innovative and hungry for the next growth cycle”, concluded the CEO of the Texan company. “We are developing some of the most revolutionary technologies in automotive, energy and artificial intelligence.”
Tags: Tesla cuts workforce due Chinese competition thousand layoffs Musk Reduce costs
