Tesla, the electric vehicle manufacturer owned by Elon Musk, is preparing to reduce its global workforce by more than 10%, citing redundancy of roles as the primary reason for the layoffs. This decision, if implemented across the company, would result in the dismissal of over 14,000 employees.
In an internal email obtained by electrick.com, CEO Musk emphasized the necessity for cost reduction and increased productivity to facilitate the company’s next phase of growth. He stated, “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.” Musk acknowledged the difficulty of the decision, stating, “There is nothing I hate more, but it must be done.”
The announcement follows Tesla’s recent report of a decline in auto deliveries, despite implementing price cuts on its electric vehicles (EVs) to stimulate demand.
Additionally, Musk is scheduled to meet Prime Minister Narendra Modi during his visit to India this month, where he is expected to announce plans for a new Tesla factory in the country. Musk expressed anticipation for the meeting, stating, “Looking forward to meeting with Prime Minister Narendra Modi in India!” on his X profile.
While the meeting date is set to visit India on April 21 and 22, PM Modi has expressed openness to global investments in India. Musk had previously indicated Tesla’s interest in providing electric vehicles in India, aligning with the country’s new electric vehicle policy announced last month. This policy aims to reduce taxes on EV imports by nearly 85% and mandates EV manufacturers to invest a minimum of ₹ 4,150 crore while allowing them three years to establish manufacturing facilities in India.