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Tesla is laying off thousands of workers as it tries to simultaneously cut costs and boost productivity, according to CEO Elon Musk.<\/p>\n
The electric automaker is cutting \u201cmore than 10%\u201d of its global headcount, Musk said in an email reported by Electrek<\/a> and Bloomberg News<\/a>. Tesla finished 2023 with over 140,000 employees, meaning the cuts could impact more than 14,000 people.<\/p>\n The layoffs come just two weeks after Tesla announced its first year-over-year sales drop<\/a> in years, amid a wider cooling of EV sales. The company has warned investors that sales growth could be \u201cnotably lower\u201d in 2024 than its stated goal of growing 50% each year. It\u2019s also somewhat in between product cycles for the first time in a long time, with the expensive Cybertruck only just recently going into production and the popular Model Y entering its fourth year without any significant updates.<\/p>\n \u201cAs we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,\u201d Musk said in the email. Tesla\u2019s growth, he said, has led to \u201cduplication of roles and job functions in certain areas.\u201d<\/p>\n \u201cAs 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,\u201d Musk wrote.<\/p>\n Tesla shipped a record<\/a> 1.8 million EVs in 2023. But the company spent much of the year slashing prices on its most popular models in an effort to counterbalance high interest rates and increased global competition. Tesla reportedly dropped<\/a> \u2014 or at the very least, delayed \u2014 plans to build a lower-cost EV starting at around $25,000, opting instead to use the underlying platform being developed to power an alleged robotaxi<\/a> that Musk said will debut on August 8th.<\/p>\n \u00a0<\/p>\n<\/p><\/div>\n