Tesla has reportedly laid off “more than 10%” of its global workforce, according to a report from Electrek. Citing an “internal company-wide email,” Electrek claimed that Elon Musk attributed the layoffs to a “duplication of roles and job functions in certain areas.”
These rumored layoffs surface following Tesla’s first quarterly decline in four years, alongside the delivery of 386,810 vehicles in the first quarter, significantly below the Bloomberg consensus of 449,000.
“Tesla has announced layoffs of “more than 10%” of its global workforce in an internal company-wide email. We exclusively reported yesterday that Tesla was prepping a massive layoff,” Electrek reported.
With the potential to impact as many as 14,000 employees, based on Bloomberg’s latest data revealing Tesla’s current workforce at around 140,000—nearly double the 2020 figure—Electrek remarked, “We don’t know which specific teams will be most or least affected by Tesla’s layoffs.”
In recent months, signs have emerged suggesting Tesla might be gearing up for a round of layoffs. The company instructed managers to pinpoint critical team members and put certain stock rewards on hold while scrapping some employees’ annual reviews. Additionally, production at Gigafactory Shanghai saw a reduction.
Over the weekend, rumors began circulating about the imminent layoffs, originating from multiple independent sources, as we reported yesterday. Speculation suggested that layoffs could reach as high as 20%. Additionally, we learned of plans to shorten Cybertruck production shifts at Gigafactory Texas, despite CEO Elon Musk’s recent assertion that Cybertruck production is currently constrained.
Here’s the full text of the email (courtesy of Electrek):
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.
As part of this effort, we have done a thorough review of the organization 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.
I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.
For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.
Thanks,
Elon
