ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Tesla Slashes 10% of Global Workforce, Informs Employees Via Email

Musk's message did not state how many jobs would be impacted by the proposed layoffs although a 10% decrease would likely touch 14,000 workers.
PUBLISHED APR 17, 2024
Cover Image Source:  A sign marks the location of a Tesla dealership in Schaumburg, Illinois | Getty Images | Photo by Scott Olson
Cover Image Source: A sign marks the location of a Tesla dealership in Schaumburg, Illinois | Getty Images | Photo by Scott Olson

Tesla has laid off 10% of its global workforce. Elon Musk, the company's CEO, emailed the employees with this information on Monday morning, per The Washington Post. Residents in the Austin region, where Tesla employs over 20,000 people at its Gigafactory, are impacted by this news. Tesla has more than 140,000 employees worldwide.

Image Source:  Tesla cars recharge at a Tesla Supercharger station | Photo by Justin Sullivan | Getty Images
Tesla cars recharge at a Tesla Supercharger station | Photo by Justin Sullivan | Getty Images

"I got an email saying I was let go, and they decided to cut 10% of the workers," Ezkel Love, an employee, said. "They're supposed to be all about innovation...That job was my chance to learn manufacturing."

Love was hired just a month ago to help put together Tesla Model Y cars at the plant near Del Valle. His termination notice mentioned reduction of staff at the Austin factory, but Musk's email to employees said the layoffs would happen worldwide. The letter explained Tesla was cutting jobs because the company had grown too fast.

"No heads-up at all. Now I'm out of work. Can't pay my rent. So, I've got to find something else to do to get by," Love said. While Love was caught off guard, Fred Lambert, the Editor-in-Chief at Electrek said they'd been hearing rumors about this for months.

"Since December," Lambert said. "More in January and February, when Tesla held off on some performance reviews, lowered some pay, and took away stock options... Signs that layoffs might be coming."

Tesla says the layoffs might be because they hired too many people, but Lambert thinks there could be more reasons like how the company did last quarter. While electric car sales are still good worldwide, Tesla had a rough first quarter this year. "There should have been tens of thousands of vehicles sold that weren't. That's a concern for Tesla investors," Lambert said.

Lambert also mentioned that Tesla's plans for its next-gen electric cars which were supposed to be affordable, got delayed because of the Cybertruck. That means Tesla isn't growing like it should, and the layoffs might be a way to make up for lost money.

Image Source: In this aerial view the Tesla logo hangs on the facade of a building at the Tesla factory | Photo by Sean Gallup | Getty Images
In this aerial view, the Tesla logo hangs on the facade of a building at the Tesla factory | Photo by Sean Gallup | Getty Images

Lambert said Tesla might end up losing money for the first time in years. "They're trying to avoid that happening in Q2 if they keep delivering vehicles at the same rate," Lambert said. While Tesla is still growing and hiring more people, folks like Love are getting left behind. "They should let us know what's really going on with the company instead of hiring a bunch of us and then letting us go," Love said.

Love mentioned he hasn't been able to reach out to the human resources department for a clear explanation of what happened. He's also worried about how this will affect people with kids and those who travel long distances to work at Giga Texas.

Image Source: Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing plant | Photo by Christian Marquardt - Pool/Getty Images
Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing plant | Photo by Christian Marquardt - Pool/Getty Images

Certain workers in Texas and California have reportedly already been informed about the impending layoffs, according to a Reuters story. How these layoffs will impact Tesla's operations in Central Texas is yet unknown. By the end of 2023, Tesla employed over 140,473 people worldwide. Musk's message did not state how many jobs would be impacted by the proposed layoffs although a 10% decrease would likely touch 14,000 workers.

Musk's memo, which says that the layoffs are required to eliminate overlapping responsibilities and job tasks in specific areas, is available in Electrek's report. These overlaps resulted from Tesla's rapid growth. Musk expressed his dislike for layoffs but said they are necessary for Tesla to become more efficient, innovative, and ready for the next phase of growth.

MORE ON MARKET REALIST
The man from New Jersey who was looking to save a few bucks, didn't know what luck had in store for him.
11 minutes ago
In 2004, Ashley Revell from London won $270,000 in one of the most stunning events in gambling history.
5 hours ago
One of the rarest Rolex watches in the world was kept in a safety deposit for decades, unworn.
8 hours ago
The "Rolling Stones" singer said leaving a part of the inheritance might "do some good in the world."
9 hours ago
Inititally, reports claimed that it sold for $1.8 million which changed as the the dust cleared up.
12 hours ago
The number was so large that it didn't even fit on a single line on the document.
13 hours ago
Her new properties were estimated to be worth around $50 million.
1 day ago
He sued the lottery company for breach of contract, gross negligence and the infliction of emotional distress among other claims.
1 day ago
As of 2024, the iconic West Coast rapper is worth well over $160 million.
1 day ago
Taylor never knew he had won because the slot machine had malfunctioned.
1 day ago
"People were super welcoming and everyone wanted to have a coffee with me," she talked about the residents.
1 day ago
“It’s challenging, being an inventor,” Catherine Hettinger said.
2 days ago
The Facebook listing from is a contender for the weirdest rent agreement in history.
2 days ago
The "Bullet Train" actor made an unusual arrangement with the old widower.
2 days ago
He found the gold coin from the "world's most valuable shipwreck."
3 days ago
The man even promised that he would make them $96 billion in profits.
3 days ago
She has starred in classic films such as "Sixteen Candles", "The Lost Boys", and "Twister".
3 days ago
There are ways to claim dependents for certain people in your life, including your boyfriend. The IRS has four factor that must be met. We have all the details.
3 days ago
Following the incident, Brad Pitt's representative has issued a warning to all fans.
4 days ago
While five transactions were worth about $80 million, one payment order worth $20 million didn't clear.
4 days ago