will lay off more than 10 per cent of its global work force, an internal memo seen by Reuters on Monday shows, as it grapples with falling sales and an intensifying price war for electric vehicles .
The world’s largest automaker by market value had 140,473 employees globally as of December 2023, its latest annual report shows. The memo did not say how many jobs would be affected. The layoffs follow an exclusive Reuters report on April 5 that Tesla had cancelled a long-promised inexpensive car, expected to cost $25,000, that investors have been counting on to drive mass-market growth. Musk had said the car, known as the Model 2, would start production in late 2025.
Monday’s letter to staff marks the second time Musk has said he would reduce head count by 10 per cent. In 2022, Reuters reported that Musk told executives he had a “super bad feeling” about the economy and needed to cut jobs at the automaker. Tesla never outlined how many jobs it cut in 2022, but its overall employee count rose.
“It is the legal obligation of management not only to inform the works council but to consult with it on how jobs can be secured,” Schulze said.“Tesla is maturing as a company and isn’t the growth story that it used to be,” said Craig Irwin, senior research analyst at Roth Capital. “Layoffs imply management expects weak demand to persist.”
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