Owner of Tesla, Elon Musk says it will lay off more than 10% of its global electric vehicle workforce.
In a memo, Musk told staff there was nothing he hated more, “but it must be done”.
The world’s largest vehicle-maker by market value had 140,473 employees globally as of December, according to its latest annual report.
“We have done a thorough review of the organisation 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,” Musk said.
READ ALSO: Elon Musk says new users of X handle will pay for tweets
One of the executive team, Andrew Drew Baglino, said in a post on X, formerly Twitter that he had made the “difficult decision” to leave the firm after 18 years.
The company is set to report its quarterly earnings later this month but has already reported a decline in vehicle deliveries in the first quarter, its first in nearly four years and also below market expectations. Some analysts described the results as “tumultuous.”
Last month, Tesla reduced production at the Gigafactory in Shanghai and last week Tesla told employees who work on the Cybertruck that shifts will be shorter on the production line at the Austin.
Tesla has begun to feel the impact of slowing demand for electric vehicles.
Credible News.ng
