Tesla to cut over 10% of its global workforce

Tesla is planning to cut over 10% of its global workforce of 140,000 employees. CEO Elon Musk mentioned in an email to staff that these cuts are necessary for cost reductions and increasing productivity.

Musk clarified that this reorganization is part of Tesla’s regular process to streamline operations for future growth. The company recently faced a decline in sales for the first time in four years, amid increasing competition in the electric vehicle market. Despite this, Tesla remains a significant player in the industry, recapturing its lead in EV sales from Chinese automaker BYD in the first quarter.

Other automakers like General Motors and Ford have also adjusted their EV production due to slower-than-expected demand. While overall EV sales are growing, they’re not rising as quickly as anticipated. Tesla’s recent staff growth has slowed compared to previous years, and this isn’t the first time it has reduced its workforce. The news of the job cuts led to a further drop in Tesla’s stock value, which had already decreased by 31% earlier this year.

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