The Chinese Electric Vehicle Market Surges as Rumors Circulate about Tesla’s Potential 10% Workforce Reduction, Leaving Approximately 14,000 Employees at Risk of Job Insecurity.
According to the media outlet Eletrek and internal sources today (4/15), Tesla CEO Elon Musk released an internal memo announcing a 10% layoff. The content of the memo is as follows (note: it has not been confirmed):
“Over the years, we have grown rapidly and have multiple factories worldwide. With this rapid growth, there has been duplication of roles and job functions in certain areas. As we prepare for the next phase of company growth, it is extremely important to examine all aspects of the company to reduce costs and improve productivity.
As part of this effort, we have conducted a thorough review of the organization and have made the difficult decision to reduce the global workforce by more than 10%. There is no other way to put it, but we must do this. It will allow us to be lean, innovative, and eager to enter the next phase of growth cycle.
I want to thank all those who are leaving Tesla for their hard work over the years. I appreciate your many contributions to our mission and wish you all the best in future opportunities. It’s hard to say goodbye.
For those who remain, I want to thank you in advance for the challenging work you continue to do. We are developing some of the most revolutionary technologies in the automotive, energy, and artificial intelligence fields. Your dedication will have a tremendous impact on us achieving our goals as we prepare for the next phase of company growth.
Thank you,
Elon”
Since Tesla has around 140,000 employees, a 10% reduction would result in 14,000 job losses.
Previously, Tesla’s quarterly delivery report showed poor performance, significantly falling behind delivery expectations, and rare year-on-year decline in sales. Although Tesla’s report did not break down sales by geographical region, the major decline seems to come from China, as Chinese electric vehicle manufacturers are rapidly growing in both domestic and export markets.
(Arkham: Musk’s Tesla and SpaceX hold nearly 20,000 bitcoins)
Tesla
electric vehicles
Elon Musk
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