Texas: Tesla company owner Elon Musk has sent a memo to his employees saying he would lay off 10 percent of the firm’s global workforce. In the email, Musk noted that the dismissals were required due to the ‘duplication of roles and job functions in certain areas,’ which resulted from the firm’s quick multinational development.
Musk cited in the email that, Tesla is readying for its next expansion stage, and they are taking measures to downsize expenses and expand productivity. As part of this step, the company comprehensively scanned its organisation and made the hard conclusion to decrease its international headcount by more than 10 percent. This decision is aimed at ensuring the company’s long-term success.
The Tesla owner said in the memo that, “There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.” Elon Musk expressed gratitude to the remaining team for their hard work as Tesla continues to invent groundbreaking technologies in fields such as automotive, energy and artificial intelligence (AI).
In a post on X, after the information about dismissals became public, Musk stated that it was necessary for Tesla to ‘reorganise and streamline the company for the next phase of growth’ every five years. The announcement comes less than two weeks after the company declared an 8.5 percent drop in vehicle deliveries during the first quarter, marking the first year-over-year decline since 2020.
Tesla’s recent underwhelming performance was an outcome of supply chain turmoil caused by aggression on shipping in the Red Sea by the Houthi group, and an arson attack carried out by environmental activists at a production facility in Germany. In addition, two senior executives also announced their withdrawal from the company on social media, indicating further disruption.
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