Tesla reduces more than 10% of its employees in the US and China

Last Monday (15), Tesla's CEO, Elon Musk, informed his employees, through an internal statement, of the need to reduce the number of employees by more than 10%, which corresponds to approximately 14 thousand in the USA and China.

Company-wide layoff

Mass layoffs occurred in the US and China, and affected departments such as sales, technology and engineering. This reduction is equivalent to 14 thousand workers, due to fierce competition in China for electric vehicles, a drop in sales in the USA and high investment costs.

“As part of this effort, we undertook a complete review of the organization and made the difficult decision to reduce our headcount by more than 10% globally.”said Musk, demonstrating enthusiasm for the next growth cycle.

Although highlighting his disgust with the situation, the CEO highlighted the importance of the measure to make the company more agile, innovative and prepared for the next phase of expansion. Additionally, he thanked the laid-off employees for their dedicated work over the years and expressed gratitude to those who remain, in anticipation of the hard work to come.

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_{Elon Musk, CEO of Tesla fires more than 14 thousand employees (reproduction/Getty Images Embed)}

Tesla faces challenges

Tesla faces an intense price dispute with BYD in China. In addition to dealing with a decline in sales in the US, high investment costs in new models and AI technology.

At the beginning of 2024, Tesla delivered less than 390,000 vehicles, which represents a 13% reduction in sales compared to forecast. Its shares are also falling, closing down 5.6% on Monday and another 2% this Tuesday, resulting in a value of $157.22.

Featured Photo: Tesla car (Reproduction: Unspalsh/Tesla Fans Schweiz)