The announcement comes days after Tesla reported a decline in car deliveries.
Elon Musk’s electric car maker Tesla plans to lay off more than 10% of its global workforce, citing duplication of roles as the reason for the cuts. If the decision were to apply to the entire company, more than 14,000 employees would be laid off.
Internal email, accessed by: electric comCEO Musk said the “next stage of growth” requires rapid growth that will lead to duplication of roles and cost savings within the company.
“As we prepare our company for its next stage of growth, it is critical that we look at all aspects of our company to reduce costs and improve productivity.As part of this effort, we are “We couldn’t be more reluctant to make the difficult decision to reevaluate our global workforce and reduce our workforce by more than 10% worldwide, but it must be done,” he wrote.
The announcement came days after Tesla reported a decline in car deliveries despite a series of price cuts for its EVs to stimulate demand.
The tech billionaire is also expected to meet Prime Minister Narendra Modi during his visit to India later this month, where he is expected to announce plans to open a new Tesla factory in the country. “Looking forward to meeting Prime Minister Narendra Modi in India!” he had posted on his X profile.
Although no date has been set for the meeting, the Prime Minister said that India welcomes investment from all over the world. Musk said earlier this month that it would be a “natural progression” for Tesla to supply electric cars in India.
The visit comes a month after India announced a new electric vehicle policy that cuts EV import duties by about 85%. The policy requires EV makers to invest a minimum of Rs 4.15 billion and gives them three years to set up manufacturing facilities in India.