PALO ALTO, CA – According to an internal memo obtained by media outlet Reuters on Monday, electric vehicle (EV) manufacturer Tesla – amid falling sales and intense competition from other automakers entering the EV market – will officially be laying off over 10 percent of its workforce globally, starting this week.
In the memo sent to all staff members, Tesla CEO Elon Musk makes the announcement regarding the layoffs – impacting engineers and production associates alike, effective immediately – although reportedly some of the affected employees were not informed that they no longer had jobs until security scanned their badges as they reported to work on Monday.
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,” Musk said in the memo. “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 percent globally.”
Musk later confirmed the layoffs in a post on X – formerly known as Twitter – saying that “About every five years, we need to reorganize and streamline the company for the next phase of growth.”
In addition to the aforementioned company-wide layoffs, two high-ranking members of the Tesla’s hierarchy – Battery Development Chief Drew Baglino and Vice President for Public Policy Rohan Patel – announced that they would be leaving the company, a move that reportedly concerned some investors who feel that it’s an indicator that the company’s growth has indeed stagnated.
Previously, Tesla had laid off a number of employees in 2022 amid stated concerns by Musk regarding the poor condition of the economy. However, despite cutting his workforce at that time, the number of people employed by Tesla had increased from 100,000 in late 2021 to more than 140,000 in late 2023.
As a result of the news, shares of Tesla closed at $161.48 on Monday, a decrease of 5.6 percent.
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.