Benzinga - by Anan Ashraf, Benzinga Editor.
Editor’s note: This story has been updated with more details from the report, context and a modified headline
Electric vehicle giant Tesla, Inc. (NASDAQ:TSLA) is reportedly laying off over 10% of its global workforce to cut costs and eliminate duplicate roles.
What Happened: The layoff aims to reduce costs and eliminate the duplication of roles and job functions, Electrek reported early on Monday, citing a company-wide mail sent by CEO Elon Musk.
In the email, Musk reportedly wrote, “As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Tesla has not yet confirmed the layoffs, and Benzinga’s request for comment went unanswered.
Why It Matters: The layoffs could impact at least 14,000 employees, including senior executives Rohan Patel and Drew Baglino, whose verified social media profiles no longer display their “Tesla badges.”
Electrek on Sunday reported that the company is considering cutting about 20% of its workforce.
This news also follows Tesla’s report of an 8.5% year-on-year decline in first-quarter vehicle deliveries, totaling 386,810 vehicles globally. This marks the first quarterly delivery drop for Tesla in four years, since the COVID-19 pandemic in 2020.
The company’s first-quarter results are expected on April 23.
As of Dec. 31, 2023, Tesla’s annual report said its headcount worldwide was at 140,473.
Price Action: Despite the cost-cutting rumors, Tesla’s share price dipped slightly in premarket trading on Monday, down 0.72% to $171.05, according to data from Benzinga Pro.
Read More: Tesla's Q1 US Sales Mainly Held Back By Very Model That Saved It From Bankruptcy Years Ago
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