Electric vehicle giant Tesla is in the process of laying off more than 10% of its workforce. An internal memo seen by Reuters reveals that the company plans to cut more than 10% of its global workforce. The reason for the layoffs cited as the company’s decline in sales and the ongoing price wars for electric vehicles. “This is something that has to be done,” CEO Elon Musk explained in an internal memo circulating among staff.
The company’s growth plans include reviewing every company area to cut costs and improve efficiency. “As part of this effort, we took a detailed look at the organization and made the difficult decision to reduce our global workforce by more than 10%,” Musk said.
Tesla may grow in two waves, starting with the Model 3 and Y’s popularity and focusing on affordable electric vehicles. This low-cost model was intended for late 2025, but insiders say Tesla is canceling it to focus on robotaxis.
