Published , by Donovan Erskine
Published , by Donovan Erskine
Tesla, the world’s leading electric vehicle manufacturer, will lay off 10 percent of its workforce, a massive round of reductions that’ll see thousands of employees lose their jobs. The move comes just over a week before Tesla (TSLA) is set to share its earnings report for the latest financial quarter.
Tesla’s imminent layoffs were announced by CEO Elon Musk in an internal memo to employees, which was obtained by CNBC. “As 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,” Musk wrote.
The news of layoffs at Tesla caused the stock to take a hit, dropping as low as $164.80 after starting the day at $170.20. Earlier this month, Tesla reported an 8.5 percent drop in annual vehicle deliveries. It was the first time the EV company saw a decline in deliveries year-over-year since the pandemic began in 2020.
With Tesla set to cut thousands of jobs, even more attention will be on the EV company when it reports its quarterly earnings next week. For more on Tesla and Elon Musk’s other business dealings, Shacknews has what you need to know.