Tesla is the latest major company to lay off employees.
The company is eliminating “more than 10%” of staff globally, according to an internal memo sent by Elon Musk on Sunday, which was seen by Business Insider. The layoffs have come shortly after the carmaker posted lackluster delivery numbers.
Musk wrote in the email: “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 cycle.”
Some Tesla employees lost access to their emails and Teams by Monday, two people with knowledge of the matter said.
Tesla’s first-quarter delivery numbers disclosed a significant slump — falling below Wall Street’s estimates. Tesla deliveries in the first quarter fell 20% from the previous quarter and more than 8% from the same time the previous year, marking the company’s first year-on-year sales decline since 2020.
In a press release, Tesla blamed the decline in deliveries on its production ramp for its refreshed Model 3, an arson attack at its factory near Berlin, and supply-chain issues caused by the Red Sea conflict.
Read more here from Business Insider.
