April 15, 2024 –
Confirmation Emerges: Tesla Announces 10% Workforce Reduction
Tesla’s anticipated large-scale layoffs, previously only rumored, have finally been confirmed with the release of an internal memo by Elon Musk.
Reports from various media outlets indicate that Musk has issued a company-wide memo announcing a global reduction in Tesla’s workforce by 10%. Earlier speculations hinted at a potential 20% reduction, but upon verification, the official Tesla memo was circulated around 3 p.m. Beijing time on April 15, confirming the 10% figure.
In response to this development, journalists reached out to employees at Tesla stores in China for confirmation. They stated that they had not received any notifications and do not anticipate any significant impact on their operations. Documents submitted to regulatory authorities in December last year indicated Tesla’s global workforce exceeded 140,000 employees.
Experts note that this round of layoffs does not come as a surprise. With intensifying competition in the global electric vehicle sector, particularly with the entry of companies like Xiaomi and Huawei, the competition in the Chinese market has become even fiercer. While Tesla’s sales in China have remained robust, there have been signs of a turnaround in the data. Coupled with the rapid rise of competitors such as BYD, Xiaomi, and Huawei, this has created immense pressure for Musk.
