Electric vehicles American manufacturing company Tesla It is reportedly cutting its workforce by more than 10 percent globally, laying off nearly 14,000 people. jobs Will lose hands.
CEO of the company Elon Musk has already told staff that layoffs are ‘inevitable.’
Elon Musk wrote in an internal memo that “cutting the workforce is the most abhorrent thing to me, but this decision was made to ensure that the company is more innovative and more growth-oriented with smaller numbers.” .’
The decision to make cuts comes following Tesla reported disappointing sales in the first quarter. Sales declined sharply in the previous quarter as a result of increased competition worldwide. The company said it sold 386,810 electric vehicles from January to March, regarding nine percent less than the 423,000 sold during the same period last year.
According to the annual report, until December 31, 2023, Tesla had recruited 140 thousand 473 people worldwide.
In a memo shared by online publication Electric on Monday, which first reported the cuts, Elon Musk wrote: ‘Over the past years we have grown rapidly with multiple factories around the world. Is. With this rapid growth, job roles and functions have doubled in some sectors. As we prepare the company for its next phase of growth, it is critical to look at every aspect of the company to reduce costs and increase productivity.’
“In this effort, we have conducted a thorough review of the organization and have made the difficult decision to cut jobs globally by more than 10 percent,” he added. There is nothing more abhorrent to me, but this decision was made to ensure that the company is more innovative and growth-oriented with smaller numbers.’
The memo added: ‘I would like to thank everyone who is leaving the company following years of hard work. I am deeply grateful for your participation in our mission and we wish you all the best for the future. It’s so hard to say goodbye.’
Elon Musk also thanked those remaining at the company for the difficult tasks ahead, saying, “Your commitment will be critical in getting us there.”
As early as Monday, two key Tesla executives wrote on X, the social media platform owned by Musk, that they were regarding to leave the company.
Andrew Baglino, senior vice president of powertrain and energy engineering, wrote that he has decided to leave the company following 18 years.
Baglino wrote: ‘I loved tackling almost every problem we tackled as a team and I am delighted to be contributing to the mission of accelerating the sustainable energy transition, a mission that is regarding I am quite excited. I will always have a warm place in my heart for Tesla and the people behind Tesla products and wish the team and the company all the best for the future.’
He added that he doesn’t have any concrete plans other than to spend more time with his family and his young children, but said he can’t be free for much longer.
In response to his post, Musk said: ‘Hardly anyone has contributed more to the company than him.’
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Rohan Patel, senior global director of public policy and business development, also wrote on X that he is leaving Tesla following eight years.
Tesla shares fell more than 3 percent following news of layoffs and the departure of two key executives. Tesla shares have lost nearly a third of their value so far this year as sales of electric vehicles decline.
Since last year, the company has slashed prices of some models by up to $20,000 as it faces increased competition and lower demand. The drop in prices has caused used electric vehicle prices to fall and Tesla’s profit margins to shrink.
The company has said that it will introduce an automated robot taxi at an event in August this year.
Elon Musk is currently ranked third on Forbes’ list of real-time billionaires, with an estimated net worth of $188.6 billion. Amazon chief Jeff Bezos is second on the list and French businessman Bernard Arnault and his family are at number one with a fortune of $213 billion.
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2024-07-09 21:53:31