Tesla To Layoff 10% Of Its Workforce, Elon Musk Says In Memo To Employees

By Bill Galluccio

April 15, 2024

Photo: SERGEI GAPON / AFP / Getty Images

Tesla CEO Elon Musk told his employees that the company is laying off 10% of its global workforce.

"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 wrote in a memo obtained by Electrek. "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% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle."

Tesla employs just over 140,000 people, so an estimated 14,000 jobs will be cut.

The layoffs come just a couple of weeks after Tesla reported that vehicle deliveries declined for the first time since 2020. The company said it delivered 387,000 vehicles in the first quarter of 2024, an 8.5% decrease compared to the first quarter in 2023.

"I would like to thank everyone who is departing Tesla for their hard work over the years. I'm 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," Musk wrote.

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