Tesla makes difficult cuts, reducing its workforce by over 10%

  • Tesla makes difficult cuts, reducing its global workforce by over 10%.
  • CEO Elon Musk expresses reluctance but deems it necessary for future growth.

Tesla reduces workforce by over 10%: CEO Elon Musk acknowledges tough decision for future growth

Tesla is reported to reduce its global workforce by over 10%. CEO Elon Musk expressed reluctance, but deems it a necessary step forward.

Tesla’s recent actions hinted at impending layoffs: Managers were instructed to identify crucial team members, stock rewards were paused, annual reviews cancelled, and production scaled back.

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Over the weekend, rumours were confirmed in a company-wide email sent by CEO Elon Musk, who expressed reluctance, but acknowledged it as a decision that “must be done”.

In an email to Tesla employees, Elon Musk said;

“Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. 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. 

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.

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.

For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.


Though exact figures are unavailable, “more than 10%” implies at least 14,000 employees affected by layoffs, considering Tesla’s overall workforce is estimated to be around 140,000.

The company is set to announce its quarterly earnings later this month. However, it has already disclosed a decline in vehicle deliveries for the first quarter, marking its first such decrease in nearly four years and falling below market expectations.

Last month, Tesla scaled back production at the Gigafactory in Shanghai. It also, last week, informed employees working on the Cybertruck that shifts would be shorter on the production line at the Austin facility.

The company also recently decided to abandon plans for producing an inexpensive car, marking a departure from one of Musk’s long standing goals of making affordable EVs accessible to the masses. 

Despite recent challenges and shifts in strategy, Tesla remains poised to navigate the evolving landscape of the EV market. While these recent decisions reflect a pivot in priorities, they underscore Tesla’s commitment to sustainable development. 

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