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Tesla Layoffs: Elon Musk Owned EV Car Manufacturer To Cut THESE Many Jobs: Report (image source: Today Technology Market ResearchDigital)

Tesla Layoffs: Elon Musk-owned electric vehicle manufacturer Tesla is reportedly planning to lay off more than 10 percent of its workforce, as stated in a report by the tech publication Electrek on Monday, citing an internal memo.

According to its latest annual report, the world’s largest automaker by market value had 140,473 employees globally as of December. Tesla has not yet responded to a request for comment.

As per the Electrek report, over the past few months, Tesla has been making preparations for potential layoffs. Managers were instructed to identify critical team members, stock rewards were paused, and some employees’ annual reviews were canceled. Additionally, production at Gigafactory Shanghai was scaled back.

Reportedly, an email was sent by Elon Musk, which subsequently leaked soon after it was sent. The full text of the email has been shared on the social media platform X by a user.

The decision for layoffs comes after Tesla reported disappointing quarterly delivery figures, missing estimates and experiencing a rare year-over-year decline in sales. The decline is attributed in part to increased competition in China’s EV market, where local manufacturers are rapidly expanding their presence.

Quarterly Profits Report

Tesla is scheduled to release its quarterly profits report next Tuesday, April 23. Analysts anticipate a profit of approximately 50 cents per share, down from 85 cents per share in the same quarter of the previous year. The company’s guidance suggests a “pause” in growth until the release of next-generation vehicles like the anticipated USD 25,000 Model 2.

The decision to downsize comes amidst a broader trend in the tech industry, with several companies announcing staff layoffs despite high industry profits.