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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.
"As we prepare the company for our next phase of growth, it is
extremely important to look at every aspect of the company for
cost reductions and increasing productivity," Tesla CEO Elon
Musk said in the memo.
"As part of this effort, we have done a thorough review of the
organization and made the difficult decision to reduce our
headcount by more than 10% globally," it said.
Tesla did not immediately respond to a request for comment.
Tesla shares were down 0.3% in premarket trading on Monday.
The planned job cuts come after Tesla reported earlier this
month that its global vehicle deliveries in the first quarter
fell for the first time in nearly four years, as price cuts
failed to stir demand.
Tesla, which reports quarterly earnings on April 23, is braced
for a slowdown in 2024 after years of rapid sales growth.
The EV maker has been slow to refresh its aging models as high
interest rates have sapped consumer appetite for big-ticket
items, while rivals in China, the world's largest auto market,
are rolling out cheaper models.
Reuters reported this month that Tesla has cancelled a
long-promised inexpensive car that investors have been counting
on to drive mass market growth.
The company is looking to shore up its margins, which have been
dented by repeated price cuts.
It recorded a gross profit margin of 17.6% in the fourth
quarter, the lowest in more than four years.
Tesla had previously laid off 4% of its workforce in New York in
February last year as part of a performance review cycle and
before a union campaign was to be launched by its employees.
Tech publication Electrek first reported the job cuts.
(Reporting by Yuvraj Malik in Bengaluru, Victoria Waldersee in
Berlin, Zhang Yan in Shanghai and Hyunjoo Jin in San Francisco;
Additional reporting by Zaheer Kachwala and Akash Sriram;
Editing by Anil D'Silva and Alexander Smith)
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