economy and politics

Tesla will cut more than 10% of its global workforce due to "duplication of roles and job functions"

Tesla will cut more than 10% of its global workforce due to "duplication of roles and job functions"

The decision, announced in an email sent by CEO Elon Musk, will mean the dismissal of around 14,000 employees.

April 15 () –

Tesla plans to cut more than 10% of its global workforce due to the “duplication of work roles and functions in certain areas,” according to an email sent by the company's CEO, Elon Musk, to its employees. and to which the American media specialized in electric mobility, Electrek, has had access.

Specifically, as read in the email, Musk has said that “an exhaustive review of the organization” has been carried out and the decision has been made to reduce the workforce “by more than 10% worldwide”, which will allow us to be more “efficient, innovative and eager for the next cycle of the growth phase.”

“As we prepare the company for our next phase of growth, it is extremely important to analyze all aspects of the company to reduce costs and increase productivity,” Musk wrote in the email.

According to a calculation made by Electrek, “more than 10%” means the layoff of around 14,000 employees, since Tesla's workforce is around 140,000 employees in total.

“I would like to thank everyone leaving Tesla for their hard work over the years. I am deeply grateful for their many contributions to our mission and we wish them the best in their future opportunities. It is very difficult to say goodbye,” he continued. Musk's text.

Likewise, the American media explains that it is not known which specific teams will be affected by these layoffs at Tesla, however, it indicates that on the social network 'X' (formerly Twitter) two well-known company executives, Drew Baglino and Rohan Patel, no longer have the “Tesla affiliated” badge that was previously displayed on their profiles.

In this regard, Electrek explains that Baglino is still listed as senior vice president of powertrain and energy on Tesla's website, and Patel is Tesla's president of policy and has also served as “a makeshift public relations arm” of Tesla. on social network 'X'.


This news is announced after a drop in vehicle sales in the first quarter by the company and amid a slowdown in demand for electric vehicles.

Tesla missed sales expectations for the start of this year by a wide margin, posting its first quarterly decline in four years.

Several analysts cited by Bloomberg are bracing for the electric vehicle maker's sales to potentially decline during the year, citing slow production of its newest model, the Cybertruck, and a pause in new products until the company begins production. a next-generation vehicle late next year.

Tesla will deliver its quarterly earnings report next Tuesday, April 23. The same analysts estimate that Tesla will still earn a profit of around 50 cents per share, up from 85 cents per share in the first quarter of 2023.

In previous quarters, Tesla has recommended a “pause” between growth phases, expecting sales growth to be more modest until the launch of next-generation vehicles like the $25,000 Model 2.

Tesla's layoffs also come at a time when many other companies in the technology industry are laying off staff, in what the US news agency calls “an apparent game of follow the leader while industry profits remain high.” .

Tesla ended last year with 140,473 employees, nearly double the total three years earlier. It has been ramping up production at two plants, one in Austin, US and the other outside Berlin, Germany that began producing the Model Y in early 2022. The company began cutting prices across its lineup as Those facilities reached higher volumes.

Tesla shares have fallen 31% this year, ranking among the worst performers in the S&P 500 index. The stock fell as much as 1.2% before the start of regular trading on Monday.

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