Why did Tesla lay off more than 10% of its workforce worldwide?

Tesla has once again carried out a wave of layoffs of its employees. Via internal email that you have accessed Electrekelectric vehicle company will lose more than 10% of its staff globally, which could mean around 14,000 employees out of 140,000 spread around the world.

However, this figure is significantly lower than what was previously rumored and expected to The layoffs will affect 20% of Tesla employees. It is currently unknown which managers, teams or areas have been hit the hardest.

However, both Drew BaglinoSenior Vice President of Energy and Propulsion at Tesla, Rohan Patel, The company’s political president has lost a Twitter badge that says they are “affiliated with Tesla,” which could mean both managers are part of this wave of layoffs. However, their positions are still reflected on Tesla’s website.

Elon Musk on the recent wave of layoffs at Tesla

Elon Musk justified the layoffs by saying that “comprehensive overview of the organization” to reduce costs and increase productivity. Tesla would also take other steps, in part to achieve its goals, such as reducing the number of shifts at the Gigafactory in Austin, Texas, where the Cybertruck is made.

Below is the full text of the letter that Elon Musk sent to his employees.

We have experienced very rapid growth over the years, with several factories expanding their production around the world. Due to this accelerated growth, some jobs and functions in certain areas have doubled in size. As we prepare for Tesla’s next phase of growth, it is critical to analyze every aspect of the company’s operations to reduce costs and improve productivity.

As part of these efforts, we conducted a comprehensive review of the organization and made the difficult decision to reduce our workforce by more than 10% worldwide. There’s nothing I hate more than anything, but it’s what we have to do. This will allow us to be more innovative and remain committed to the next stage of growth.

I want to thank everyone who has left Tesla for their hard work over the next few years. I am deeply grateful for their contributions to our mission and wish them success in their future opportunities. It’s very difficult for me to say goodbye.

To those who remain at Tesla, I want to thank you for facing a difficult challenge to overcome. We develop some of the most revolutionary technologies in automobiles, renewable energy and artificial intelligence. As we prepare for the next phase, your determination will make a huge difference in achieving our goals.

Thank you,
Elon.