Tesla Reportedly to Cut More than 10% of its Global Workforce in Cost-Cutting Move

Tesla, the electric automaker, is set to eliminate over 10% of its global workforce in an effort to slash costs and enhance efficiency. The layoffs, which could impact more than 14,000 employees, come on the heels of the company's first year-over-year drop in sales in three years.

CEO Elon Musk reportedly stated in an internal email that the move is essential as the company prepares for its next phase of growth.  The company shipped a record 1.8 million electric vehicles in 2023, but it faced challenges such as slashing prices on popular models and postponing plans for a lower-cost EV.

Tesla has also experienced logistical issues and supply chain disruptions, further impacting its operations. The layoffs follow a decline in vehicle deliveries, with production setbacks and supply chain disruptions contributing to the company's first year-on-year sales decline since 2020. 

Tesla's stock has been affected by waning demand for electric vehicles and intensified competition from Chinese automakers. The company will report its first-quarter financial results on April 23.