Elon Musk-owned electric vehicle maker Tesla is planning to lay off more than 10% of its global workforce, citing duplication of roles as the reason behind the job cuts. If this decision is implemented across the company, more than 14,000 employees will be laid off.
In an internal email accessed by electrick.com, CEO Musk said that rapid growth had led to duplication of roles at the company and that cost reduction was necessary for the “next phase of growth.”
“As we prepare the company for its next phase of growth, it is extremely important to look at every aspect of the company to cut costs and increase productivity. As part of this effort, we conducted a thorough review of the organization And the difficult decision to reduce our workforce globally by more than 10%, there is nothing I hate more, but it must be done,” he wrote.
Tesla’s announcement
The announcement comes days after Tesla reported a decline in auto deliveries, even as it implemented a series of price cuts on its EVs to boost demand.
The tech billionaire is also scheduled to meet Prime Minister Narendra Modi on his visit to India this month and is expected to announce his plans to open a new Tesla factory here. “Looking forward to meeting Prime Minister Narendra Modi in India!” He had posted on his x profile.
Meeting PM Modi
Although no date has been fixed for the meeting, the PM has said that he welcomes investments in India from across the world. Earlier this month, Mr Musk had said it would be a “natural progression” for Tesla to make electric vehicles available in India.
The visit comes a month after India announced a new electric vehicle policy, which plans to cut taxes on imports of EVs by about 85%. Under the policy, EV manufacturers are required to invest a minimum of ₹ 4,150 crore and are given three years to set up manufacturing facilities in India.