- Elon Musk announced in an internal memo that Tesla plans to cut more than 10% of its global workforce.
- Tesla’s CEO said that as the electric vehicle maker has rapidly expanded, there has been some “duplication” of roles.
- He added that the cuts will help it become “lean, innovative and hungry for the next phase of growth.”
Elon Musk sent a memo to Tesla employees on Sunday announcing that the electric vehicle maker was laying off more than 10% of its workforce worldwide.
The internal email was sent around midnight in California, according to a timestamp seen by Business Insider.
Tesla’s CEO said in the memo, obtained by BI, that there had been a “duplication of roles and functions in certain areas” as the company rapidly expanded.
Over the weekend, Tesla employees speculated that layoffs were on the horizon, as rumors spread that some managers had been asked to provide senior management with a list of names. throughout the company.
Separately, Tesla in February began asking managers to identify positions within the company that were critical to the business and temporarily delayed performance reviews.
These are the company’s first large-scale layoffs since it furloughed some workers at its Buffalo, New York, factory in February 2023.
At the time, the Worked United union said in a complaint filed with the National Labor Relations Board (NLRB) that Tesla illegally fired some staff, saying the workers were fired “in retaliation for union activity and to discourage union activity. ” Tesla denied the allegation and said the employees were fired due to poor performance.
The job cuts come as Tesla struggles with slowing demand for its electric vehicles and its stock is down more than 31% since the start of the year. The company will release its next earnings report on April 23.
Read the full memo Elon Musk sent to Tesla employees below:
Over the years, we have grown rapidly with several factories located around the world. With this rapid growth, there has been a duplication of roles and job functions in some areas. As we prepare the business for our next phase of growth, it is extremely important to examine all aspects of the business to reduce costs and increase productivity. As part of this effort, we conducted a thorough review of the organization and made the difficult decision to reduce our workforce by more than 10% globally. There’s nothing I hate more, but it has to be done. This will allow us to be lean, innovative and hungry for the next growth cycle.
I want to thank everyone leaving Tesla for their hard work over the years. I am 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 who remain, I would like to thank you in advance for the difficult work ahead of us. We are developing some of the most revolutionary technologies in automotive, energy and artificial intelligence. As we prepare the company for the next phase of growth, your determination will make a huge difference in getting us there.
THANKS,
Elon
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