Business

Tesla is cutting 10% of its global workforce in a bid to reduce costs and bolster productivity, it has been reported.

The electric vehicle maker, founded and run by Elon Musk, was yet to comment on a story earlier on Monday by Electrek that it was to axe about 15,000 personnel.

The tech publication said the cuts were revealed in an internal memo – also seen by the Reuters news agency.

It added that managers had been tasked earlier this year with identifying key personnel.

The company, which had more than 140,000 staff at the end of 2023, has been struggling with soft demand for its electric vehicles.

Challenges have included the squeeze on budgets from the cost of living crisis and the impact of higher interest rates across much of the western world.

It has cut prices several times in a bid to woo buyers but its efforts have been hampered by strong competition, mainly from China.

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Tesla, which is the world’s largest automaker by stock market value, reported a decline in vehicle deliveries in the first quarter of its financial year – its first in nearly four years.

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Reuters reported Musk saying in his email to colleagues: “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 have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally.”

Tesla is set to report its next quarterly earnings on 23 April.

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