Electric car giant Tesla is set to cut 15,000 jobs, or 10% of its global workforce, in a bid to reduce costs and improve productivity.
The news comes after a challenging first quarter for the company, which saw a decline in vehicle deliveries for the first time in nearly four years. This slump has been attributed to a combination of factors, including rising living costs, higher interest rates, and strong competition, particularly from Chinese manufacturers.
Tesla, the world’s most valuable automaker by market capitalisation, has already implemented several price cuts to attract buyers. However, these efforts haven’t yielded the desired results.
In an internal memo to staff, CEO Elon Musk reportedly underlined the need for cost reduction and productivity improvements as the company prepares for its “next phase of growth.” This difficult decision, he said, involves a global workforce reduction of over 10%.
The announcement comes ahead of Tesla’s next quarterly earnings report scheduled for April 23rd.
Subscribe to Investomania for more business news and updates.
