Tesla to lay off at least 14,000 workers worldwide – rts.ch

Tesla will cut “more than 10%” of its global workforce, according to an internal letter sent by boss Elon Musk to employees and obtained by several media outlets. The electric car maker is currently going through a rough patch, facing competition from low-cost Chinese automakers.

In his letter, Elon Musk explains that Tesla has “grown rapidly” in recent years, a growth that has created “repetition (…) in certain activities”, according to the boss of the American company. It indicates that the manufacturer is “preparing for its next phase of growth” and, in doing so, is seeking to achieve “cost savings” and “production breakthroughs”.

“We did a thorough analysis and took the decision to reduce our workforce by more than 10% worldwide,” said the entrepreneur. In its latest annual report, Tesla indicated that it had around 140,000 workers at the end of December, which means that the manufacturer will release at least 14,000 workers.

Lay off employees to make the company more innovative

“There’s nothing I hate more” than layoffs, “but we have to get through it,” wrote Elon Musk. “It will depend on us, make us more innovative and motivated for our next growth cycle.”

After years of success, the American automaker is facing a difficult period. It gave way to the Chinese BYD as the world’s leading manufacturer of electric vehicles in the last quarter of 2023. In general, Tesla, which has positioned itself from the beginning rather than at the top of the range, is facing competition from Chinese automakers. at a very low price.

“Investors’ patience is starting to wane”

“First-quarter shipments were dire, with Chinese and global demand for electric vehicles weakening,” said Wedbush Securities analysts. “Tesla is stuck between two waves of growth and investor patience is starting to wane,” they added.

In the first quarter of 2024, Tesla delivered significantly fewer vehicles than expected and its production fell by 1.6% year-on-year.

afp/lia