Tesla to Cut 10% of Global Workforce: Report
By Nick Trombola April 15, 2024 2:03 pm
reprints
It appears Tesla forgot to plug in the car last night.
The electric vehicle giant is set to lay off more than 10 percent of its global workforce, according to reporting by Electrek, citing an internal Tesla memo.
Roughly 14,000 out of Tesla’s 140,000 employees will likely lose their jobs, according to Electrek and Securities and Exchange Commission filings.
Representatives for Tesla did not immediately respond to a request for comment.
It’s unclear when or where the cuts will be concentrated or if Tesla plans to shed any office, retail or industrial space in the process.
“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 obtained by Electrek. “There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Tesla has a large physical presence across the U.S., with vast manufacturing plants it calls “gigafactories” near Buffalo, N.Y.; Reno, Nev.; and Austin, Texas, where it also has its corporate headquarters. Its first-ever factory operates in Fremont, Calif., and the company also has stores and showroom galleries in over 35 states.
Tesla is not the only Musk-helmed company cutting costs. X Corporation, formerly known as Twitter, signed over a 35,384-square-foot chunk of its headquarters in Chelsea to fintech company MoneyLion earlier this year.
The deal came about a year after Musk opted to place the bulk of its New York City offices on the sublease market as part of his cost-cutting plan for the spiraling social media company.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
