Over 10% of Tesla's worldwide employees to be cut

According to Electrek, Tesla Inc. will cut more than 10% of its workforce globally as the automaker deals with a decline in the market for electric vehicles.

Electrek said that Elon Musk justified the layoffs by pointing to "duplication of roles and job functions in certain areas," citing an email the CEO issued to employees. If the company-wide reductions are implemented, almost 14,000 workers will be let go.

Early this month, Tesla revealed terrible car deliveries that fell well short of forecasts and marked the company's first quarterly decrease in four years. Given the EV maker's sluggish production of its newest model, the Cybertruck, and the hiatus in new product releases until the business begins building a next-generation vehicle late next year, some analysts are preparing for a possible decline in sales for the year.

With 140,473 workers at the end of last year, Tesla nearly doubled its workforce from three years prior. Two facilities, one in Austin and the other outside of Berlin, that began producing Model Y sport utility cars in early 2022, have been increasing their output. With those factories reaching larger quantities, the corporation began to lower costs throughout its portfolio.

Since early this year, when managers were asked to confirm if each employee's employment is essential, Tesla employees have been afraid that they would lose their jobs. Additionally, certain paid staff members were informed late in the previous year that merit-based equity awards would no longer be presented by the corporation as a component of yearly performance assessments.

The recent EV lag that Tesla has experienced is universal. Just 300,114 battery-electric vehicles were supplied by China's BYD in the first quarter, a 43% decrease from the last three months of 2017, when it momentarily overtook other EV manufacturers as the world's top seller of EVs. Due to customer resistance to continued high pricing and a lack of charging stations, manufacturers such as Volkswagen, General Motors, and Ford have postponed, reduced, or abandoned EV programs entirely.

In mid-2022, Tesla made a significant staff cut of around 10% by eliminating nearly 10% of its salaried personnel.

(Sources: bloomberg.com, electrek.co)