Tesla is cutting 10% of its staff after years of slumping sales, Electrek reported first. Vehicle deliveries have been declining year-to-year since 2020, leading to layoffs across the company’s global workforce.
Employees were reportedly informed in a company-wide email of the approximately 14,000 jobs being cut. The exact teams being impacted wasn’t revealed.
“Over the years, we have grown rapidly with multiple factories scaling around the globe,” Elon Musk wrote in an email, per Electrek. “With this rapid growth there has been duplication of roles and job functions in certain areas. 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.”
“There is nothing I hate more, but it must be done,” he continued. “This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Another report from Electrek detailed that employees working on the Cybertruck production line at Tesla’s Austin factory would have their shifts shortened. While the standard shift previously was 12 hours, it was cut to 11 hours during the week and 10.5 hours for those working weekends. Most employees work three or four days a week.
According to Engadget, Cybertruck deliveries are delayed. One user on the Cybertruck Owners Club forum reported that he was told in an email that the delays were due to an issue with the accelerator and that all shipments were recalled and now delayed until April 20.
