Tesla, Musk cuts costs and cuts 14,000 jobs

Tesla is cutting 14,000 jobs, about 10% of its global workforce. Amidst weak growth prospects, a general decline in electric vehicle sales and growing competition, Elon Musk is taking the plunge and making a drastic decision to downsize the electric car giant.

Drew Baglino, one of the top executives who is leaving the company after 18 years, is also leaving. A big loss that, together with the reduction, punishes Tesla shares on Wall Street, where they lose almost 3%. “There is nothing I hate more, but it has to be done. It will allow us to be more agile, innovative and hungry for the next phase of growth,” Tesla’s CEO said in an email to employees announcing the cuts and explaining that. they became necessary following the rapid growth of the company which resulted, among other things, in “duplication of duties and tasks in some areas”.

Cost reduction – highlighted Musk – is necessary to keep the big electric car to take its next phase of growth and increase productivity. Tesla’s problems came to the fore in the fourth quarter, when it lost the baton of the queen of the world in terms of sales of electric cars. The overthrow of the Chinese BYD was a blow, followed in the first three months of the year by the first annual decline in sales since 2020. The problems are part of a general decline in sales of electric cars worldwide, with consumers postponing purchases or preferring combination. cars. The difficult picture worries investors and Wall Street, where Tesla has lost 34% since the beginning of the year.

(Unioneonline/D)

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