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Tesla cuts costs dramatically, 14 thousand employees leave

2024-04-16 14:16:53Lifestyle SHKRUAR NGA REDAKSIA VOX

Tesla cuts costs dramatically, 14 thousand employees leave

Tesla cuts global workforce by more than 10%. In an e-mail addressed to employees, Elon Musk explained that the initiative is in some cases due to the duplication of roles but above all the need to reduce costs. The company has over 130,000 employees worldwide. A cut of 10% potentially equates to at least 14,000 laid off workers.

"As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company in terms of reducing costs and increasing productivity," Elon Musk said in a letter to employees. "As part of this effort, we have undertaken a complete review of the organization and made the difficult decision to reduce our workforce by more than 10% globally," he continues.

Tesla shares have lost 31% since the start of the year, due to falling demand for electric cars and stiff competition from Chinese rivals. Tesla recently reported that it recorded its first annual decline in vehicle deliveries since 2020, when Covid-19 curbed production and sales.

Tesla reported this month that global vehicle shipments in the first quarter fell for the first time in nearly four years as price cuts failed to boost demand.

The electric vehicle maker has been slow to refresh older models as high interest rates have dampened consumer appetite for expensive items, while rivals in China, the world's biggest car market, are rolling out newer models. cheap.

Tesla had canceled the launch of a long-promised affordable car that investors had been waiting for to spur mass-market growth. Musk denied the report but did not identify any specific inaccuracies. Tesla previously laid off 4% of its workforce in New York in February last year as part of a round of performance reviews.

 

 


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