Tesla plans to reduce its global workforce by over 10%

Tesla is said to be reducing its global workforce by more than 10%, which amounts to over 14,000 employees out of its total staff of 140,000. This downsizing comes as Tesla, which has nearly doubled its workforce since the end of 2020, faces increased competition and softer demand in the electric vehicle industry.

According to a report from Reuters, CEO Elon Musk explained in an email to staff over the weekend that the job cuts are necessary for "cost reductions and increasing productivity." However, the email did not mention the slowdown in demand for electric vehicles or any impact on Tesla's sales.

“We have done a throrough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” Musk wrote in the email, as reported by Electrek, an EV news site, and Reuters.

Despite experiencing a year-over-year decline in sales in the first quarter of this year, marking its first such drop since the peak of the pandemic four years ago, Tesla regained its title as the leader in global EV sales from Chinese automaker BYD in the first quarter, despite the decrease in sales.