Tesla to cut 14,000 jobs as Elon Musk tries to make it ‘lean, innovative and hungry’

Tesla is laying off more than 10% of its global workforce, equivalent to at least 14,000 positions.

The electric car maker’s chief executive, Elon Musk, said he had made “the difficult decision to reduce our workforce by more than 10% globally,” in a memo first reported by the Elektrek online publication. Tesla employs 140,473 people, according to its annual report.

Musk wrote that Tesla had grown rapidly in recent years and that, as a result, there had been “duplication of job roles and functions in certain areas.”

Referring to the job cuts, he wrote: “There is nothing I hate more, but it has to be done. This will allow us to be efficient, innovative and eager for the next cycle of the growth phase.”

The reported move comes after a difficult start to the year for the electric car maker, which fell short of market expectations with first-quarter sales figures. Tesla said it had made about 387,000 deliveries to customers in the first quarter of 2024, missing market expectations by about 13%. It was its first drop in deliveries in nearly four years.

The company cited production problems caused by unforeseen factors such as attacks on ships in the Red Sea and an arson attack at its European factory, but the figures also pointed to weakening global demand.

Musk dismissed comments that his divisive personality had caused a drop in sales and pointed to similarly poor figures from Chinese rival BYD, saying it was a “tough quarter for everyone.”

Tesla has manufacturing plants in California, Nevada, Texas and New York in the United States, as well as plants in Germany and China.

Separately, Reuters reported on Monday that BP had cut more than a tenth of the workforce at its electric vehicle charging business – representing more than 100 jobs – and withdrawn it from several markets after A bet on the rapid growth of commercial electric vehicle fleets will not prosper. pay off.

BP said the changes to its Pulse unit were “a step to ensure we can execute our objectives with even greater precision and effectiveness.”

Tesla has been contacted for comment.