Tesla plans to lay off 10% of workforce after dismal quarterly sales, multiple news outlets report

Tesla plans 10% layoff after disappointing quarterly sales. Stay informed on workforce changes and company updates amid market challenges

After experiencing a significant downturn in first-quarter sales, Tesla is gearing up to lay off approximately ten percent of its workforce in a bid to streamline costs, according to reports from multiple media outlets on Monday.

 

CEO Elon Musk outlined the company's restructuring plans in a memo addressed to employees, indicating that around 14,000 out of Tesla's 140,473 workers could be affected by the layoffs.

 

Musk emphasized the necessity of evaluating every facet of the company to identify cost-saving measures and enhance productivity as Tesla prepares for its next phase of expansion.

 

News of the layoffs was initially disclosed by electric vehicle website Electrek, with subsequent reports from The New York Times and CNBC providing additional details.

 

Coinciding with the announcement of the layoffs, two prominent Tesla executives, Andrew Baglino, senior vice president of powertrain and energy engineering, and Rohan Patel, senior global director of public policy and business development, revealed their departures from the company via the social media platform X.

 

The news of the workforce reduction and executive departures contributed to a nearly three percent decline in Tesla's stock price on Monday. This downward trend reflects broader challenges facing the company, as Tesla's shares have already depreciated by approximately one-third since the beginning of the year amidst softening electric vehicle sales and intensified competition in the global market.

 

The decline in Tesla's sales during the last quarter is attributed to a combination of factors, including heightened competition, slowing growth in electric vehicle sales, and unsuccessful price reductions aimed at stimulating demand. Despite delivering 386,810 vehicles in the first quarter, a decrease of nearly nine percent compared to the same period last year, Tesla has been grappling with the evolving landscape of the electric vehicle market.