Elon Musk: Tesla announces layoff of 10% of employees – 04/15/2024 – Market

Tesla will lay off more than 10% of its global workforce, according to an internal memo seen by Reuters on Monday (15), as the company faces falling sales amid intensifying vehicle price disputes. electrical.

The world’s largest automaker by market value had 140,473 employees worldwide as of December 2023, according to its latest annual report. The memo did not say how many jobs would be affected.

Some employees have already been notified of the layoffs, a source familiar with the matter told Reuters, declining to be identified due to the sensitivity of the matter.

“As we prepare the company for our next phase of growth, it is extremely important to analyze all aspects to reduce costs and increase productivity,” Tesla Chief Executive Elon Musk said in the memo. “As part of this effort, we undertook a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% worldwide,” he said.

Tesla did not immediately respond to a request for comment.

The planned cuts come after Tesla this month said its global first-quarter vehicle deliveries fell for the first time in nearly four years as price cuts failed to stimulate demand.

Tesla, which releases its quarterly earnings on April 23, is on track for a slowdown in 2024 after years of rapid sales growth.

The electric vehicle maker has been slow to update its aging models, while high interest rates have sapped consumer appetite for big-ticket items and rivals in China, the world’s biggest car market, are launching cheaper models.

The company is looking to bolster its margins, which have been hurt by repeated price cuts.

It reported a gross profit margin of 17.6% in the fourth quarter, the lowest in more than four years.