On April 15th, Tesla, the world's largest electric car manufacturer, sent an email to all employees announcing a global workforce reduction of 10%. Tesla CEO Elon Musk emphasized in the email, "Reducing costs and increasing productivity are crucial from every aspect of the company."
Below are the specifics of Musk's company-wide email:
"In the past few years, we have grown rapidly, establishing multiple factories globally. With rapid growth, certain areas of division of labor and job functions within the company have become redundant. As we prepare for the next phase of company development, it is crucial to consider cost reduction and increased production efficiency from every aspect.
As part of these efforts, we have conducted a thorough review of the company's organization and have made the difficult decision to reduce the global workforce by over 10%. I dislike layoffs, but it is necessary. This will allow us to streamline and innovate better, preparing for the next growth cycle. To those leaving Tesla, I am deeply thankful for their hard work over the years and their numerous contributions to Tesla's mission. I also wish them all the best in their future endeavors.
Saying goodbye is never easy. For those staying, I want to express gratitude in advance, as the work ahead of us will be challenging. We are developing some of the most revolutionary new technologies in the automotive, energy, and artificial intelligence fields. Your determination as we prepare for the next phase of company growth will play a significant role in our development. Thank you!"
Musk's email confirms earlier reports from the media. There were rumors previously that Tesla was preparing for a large-scale layoff, with some employees speculating the layoffs could be as high as 20%, causing concern among some staff. The confirmed layoff percentage now stands at 10%.
This marks Tesla's fifth major layoff since 2017, when the company laid off 2% of its workforce. Subsequently, the company reduced staff by 9%, 7%, and 3% in 2018, 2019, and 2022, respectively.
Despite these rounds of major layoffs, Tesla's workforce has significantly increased over the past few years, growing from 38,000 employees in early 2018 to 140,000 in early 2024.
