Tesla to lay off 10% of its employees around the world

Tesla intends to lay off 10% of its employees around the world, according to press reports quoting an internal company memo.

According to CNBC, the company’s CEO, Elon Musk, said: “As we prepare the company for the next stage of growth, it is extremely important that we look at every aspect of the company to reduce costs and increase productivity.”

Musk continued in the memo: “As part of this effort, we conducted a comprehensive review of the organization and made the difficult decision to reduce the number of our employees by more than 10% globally.”

Tesla had about 140.4 thousand employees in December 2023.

Tesla shares have suffered a shock in recent months, falling by 31% since the beginning of the year so far amid declining demand for electric cars and intensifying competition from Chinese automakers.

In reference to the layoffs, the company announced earlier this month its first annual decline in vehicle deliveries since 2020, as deliveries are considered a rough estimate of Tesla sales, but they are not precisely defined.