The Tesla boss announced the job cuts in an internal communication, several media outlets such as Handelsblatt and the tech publication “Electrek” reported on Monday. 14,000 jobs will be affected by the job cuts.
“This will make us lean, innovative and hungry for the next phase of growth,” wrote Musk. He hates the step, but it is necessary.
Tesla will present its figures for the past quarter next week. The electric car pioneer started the year with a significant decline in sales. It was the first time in almost four years that the company sold fewer vehicles than a year ago.
Tesla is struggling with competition from industry newcomers such as smartphone manufacturer Xiaomi in China and the growing range of electric cars. The effect of price cuts and discounts is now dwindling as Americans are only slowly refreshing their aging model range and will only come up with important new products next year. According to insiders, Tesla has also abandoned its plan to build a low-cost electric car for the mass market.
