Tesla Plans To Sack 14,000 Employees Globally
Following a recent decline in auto deliveries, Tesla, owned by Elon Musk, is reportedly considering laying off more than 10 per cent of its workforce worldwide, citing redundancies in roles as the primary reason for the proposed job cuts. If implemented companywide, this decision could result in over 14,000 employees facing termination.
In an internal email obtained by electrick.com, CEO Musk explained that the company's rapid expansion had led to duplicated roles and necessitated cost reductions to facilitate the "next phase of growth."
"As we prepare the company for our next phase of growth, it is extremely important to scrutinize every aspect of the organization for cost-saving measures and increased productivity. As part of this effort, we have conducted a thorough review of the organization and have reluctantly decided to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done," Musk stated in the email.
This announcement comes in the wake of Tesla's recent report of decreased auto deliveries, despite implementing several price cuts on its electric vehicles to stimulate demand.
Additionally, Musk is slated to meet with Prime Minister Narendra Modi during his upcoming visit to India, expected to occur sometime this month, where he may disclose plans regarding the establishment of a new Tesla factory in the country. "Looking forward to meeting with Prime Minister Narendra Modi in India!" Musk previously announced on his X profile.
While the meeting date is yet to be confirmed, Prime Minister Modi has expressed openness to investment in India from various international entities. Musk had earlier suggested that it would be a "natural progression" for Tesla to introduce electric vehicles in India.
This visit coincides with India's recent unveiling of a new electric vehicle policy, which aims to slash taxes on EV imports by nearly 85 per cent. The policy mandates EV manufacturers to invest a minimum of ₹ 4,150 crore and grants them a three-year window to establish manufacturing facilities in India.
