Tesla is cutting 10% of its global workforce in a bid to cut costs and boost productivity, it has been reported.
The electric vehicle manufacturer, founded and led by Elon Muskhas yet to comment on a Monday report by Electrek that it would lay off about 15,000 people.
The technology publication said the cuts were revealed in an internal memo – also seen by news agency Reuters.
He said officials were tasked earlier this year with identifying key personnel.
The company, which had more than 140,000 employees at the end of 2023, is struggling with low demand for its electric vehicles.
Challenges include squeezed budgets due to the cost of living crisis and the impact of rising interest rates across much of the Western world.
It has slashed its prices several times in a bid to attract buyers, but its efforts have been hampered by stiff competition, mainly from China.
You’re herewhich is the world’s largest automaker by stock market value, reported a decline in its vehicle deliveries in the first quarter of its financial year – the first in almost four years.
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Reuters reported that Musk said in his email to colleagues: “As we prepare the company for our next phase of growth, it is extremely important to examine all aspects of the business to reduce costs and increase the 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.”
Tesla is expected to report its next quarterly results on April 23.
