Tesla, the world’s largest automaker by market value, has announced a significant reduction in its global workforce. The electric vehicle giant is set to let go of more than 10% of its employees, a decision that has sent ripples through the industry.

The news broke via an internal memo, first reported by Electrek, in which Tesla’s CEO, Elon Musk, expressed his regret over the decision. Despite his aversion to the move, Musk emphasized the necessity of the layoffs. The memo revealed that the company had conducted a thorough review of the organization before making this tough call.

The layoffs come at a time when Tesla is grappling with a slowdown in sales and an intensifying price war in the electric vehicle market. The company, which had a global headcount of approximately 140,000 as of December 2023, is now expected to report a decline in vehicle deliveries. This marks the first such decline in nearly four years, raising questions about the company’s future growth.

Tesla’s shares have also been affected, with a dip observed in premarket trading following the announcement. The company, known for its innovative approach and commitment to sustainable transportation, now faces the challenge of navigating through these tumultuous times.

Will this strategic move enable the company to emerge leaner, more innovative, and ready for the next growth cycle? Or is it a sign of deeper issues within the company—or the EV industry at large?

Read more:

• https://electrek.co/2024/04/15/tesla-lays-off-more-than-10-of-its-global-workforce/
• https://www.bbc.com/news/technology-68818113
• https://www.reuters.com/business/autos-transportation/tesla-lay-off-more-than-10-its-staff-electrek-reports-2024-04-15/
• https://www.channelnewsasia.com/business/tesla-layoffs-shares-fall-sales-slowdown-china-price-war-byd-xiaomi-4266676
• https://www.nbcnews.com/business/business-news/tesla-will-lay-10-percent-global-workforce-read-elon-musk-memo-rcna147820

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