Elon Musk-owned electric vehicle maker Tesla is planning to lay off over 10% of its global workforce, citing duplication of roles as the reason behind the job cuts. If the decision applies companywide, it would lead to over 14,000 employees being laid off.
In an internal email, accessed by electrick.com, CEO Musk said rapid growth that has led to duplication of roles in the company and cost reduction was necessary for the "next phase of growth".
"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. As part of this effort, we've done a thorough review of the organisation 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," he wrote.
The announcement comes days after Tesla reported a drop in auto deliveries even though it implemented a series of price cuts on its EVs to boost demand.
The tech billionaire is also scheduled to meet Prime Minister Narendra Modi on his visit on India some time this month and is expected to make an announcement about his plans to open a new Tesla factory here. "Looking forward to meeting with Prime Minister Narendra Modi in India!" he had posted on his X profile.
While no date for a meeting has been set, the PM has said that he welcomes investment in India from across the globe. Earlier this month, Mr Musk had said that it would be a "natural progression" for Tesla to provide electric vehicles in India.
The visit comes a month after India announced a new electric vehicle policy which plans to cut taxes on the import of EVs by almost 85%. The policy requires EV manufacturers to invest a minimum of ₹ 4,150 crore and gives them three years to set up manufacturing facilities in India.
