Tesla, under the leadership of Elon Musk, has unveiled plans to downsize its workforce by over 10 percent globally, as reported in an internal company-wide communication, according to sources cited in a recent media report.
In the communication, revealed by Electrek, Musk articulated the rationale behind the decision, citing the necessity to streamline operations in anticipation of the company's forthcoming growth phase.
Musk highlighted the company's recent expansion, which has resulted in redundancies and overlapping job functions in certain departments. He expressed regret over the decision, acknowledging the hardship it entails for affected employees, yet emphasized its necessity for Tesla's future agility and innovation.
The strategic reduction in headcount, he stressed, is pivotal for ensuring a leaner organizational structure, fostering a culture of innovation, and positioning Tesla competitively for its next growth cycle.
According to industry reports, Tesla's workforce stood at over 140,000 employees by the end of 2023, indicating that the downsizing initiative could potentially impact over 14,000 individuals.
This move comes on the heels of Tesla's recent sales decline, attributed to a broader slowdown in the electric vehicle (EV) market.
In parallel, Musk has extended an invitation to young talent to join his artificial intelligence (AI) venture, xAI, spanning various disciplines. The venture, spearheaded by the tech mogul, is actively recruiting engineers, designers, and professionals across product development, data analytics, and infrastructure domains, underscoring Musk's ongoing commitment to technological advancement and innovation.
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