Tesla Cuts 10% of Jobs in Response to Market Challenges


Tesla is set to lay off over 10% of its global workforce as it grapples with declining sales and intensifying competition in the electric vehicle (EV) market. The move comes alongside the departure of two senior executives, Drew Baglino and Rohan Patel, who announced their exits on social media. CEO Elon Musk, in a memo to staff, cited the need for cost reductions and increased productivity as Tesla enters its next growth phase. With over 140,000 employees at the end of 2023, the layoffs will impact at least 14,000 workers. Tesla's shares have fallen by 31% year to date, and the company reported an 8.5% drop in global car deliveries compared to the previous year, marking the first year-over-year quarterly sales decline since 2020. Amidst these challenges, Tesla faces fierce competition, particularly from Chinese EV manufacturers like BYD, which has surpassed Tesla in production volume, and Xiaomi, which recently launched its first electric car.

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