Tesla is preparing to lay off more than 10% of its global workforce following weak first quarter deliveries and increasing competition in the electric vehicle market, according to a report. A leaked internal email from CEO Elon Musk said that the automaker is looking to cut costs and increase productivity after years of rapid growth that have led to duplication in some roles and functions in certain areas of the company, tech publication Electrek reported on Monday.
The reported lay-offs come after Electrek reported that Tesla had told managers to identify critical team members, paused some stock rewards, canceled some worker’s annual reviews and reduced production at Gigafactory Shanghai. Earlier this month, it was reported that Tesla's quarterly deliveries declined for the first time in nearly four years and fell short of Wall Street analysts' estimates.