Tesla to axe 10% of staff

Tesla is expected to lay off more than 10 per cent of its staff worldwide as the company prepares for what founder Elon Musk calls its “next phase of growth”.

The move by the carmaker comes as it faces declining sales and a price war for electric vehicles (EVs), reports Reuters.

Among the departures from the company are two senior leaders, Drew Baglino, battery development chief, and Rohan Patel, vice-president for public policy.  

Musk last announced a round of job cuts in 2022, but Tesla’s workforce has still risen from about 100,000 in late 2021 to more than 140,000 in late 2023, according to filings with US regulators.

A memo sent to all staff – and reportedly seen by Reuters – reveals plans for the latest redundancies. 

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk says in the memo.

“As part of this effort, we have done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10 per cent globally.” 

Tesla did not immediately respond to a Reuters’ request for comment.

The layoffs come after Tesla revealed its global vehicle deliveries in the first quarter fell for the first time in nearly four years.