Tesla Lays Off Over 10% of Staff as Elon Musk Claims ‘It Must Be Done’

Tesla is laying off over 10% of its global workforce, or roughly 14,000 jobs, according to an internal email CEO Elon Musk reportedly sent to staff.

Musk’s email states that Tesla’s growth led to some job “duplication.” The executive said “cost reductions” are also necessary for the company’s future success.

“There is nothing I hate more, but it must be done,” Musk wrote. “This will enable us to be lean, innovative, and hungry for the next growth phase cycle.”

The memo was first reported by Electrek on Monday, which says some laid-off Tesla employees have already been locked out of the company’s systems. BBC also reports that laid-off employees are locked out of their emails, citing one anonymous employee who had been let go.

Earlier this year, Tesla managers were asked to decide which jobs at the company were essential, suggesting layoffs were on the horizon.

In his layoff announcement email, Musk thanked departing employees as well as those staying at the company, noting that Tesla has a “difficult job” ahead. Tesla had a rough first financial quarter this year, seeing its first year-over-year quarterly decline in vehicle deliveries since 2020.

Tesla blamed its quarterly volume decline on its new Model 3, an arson attack at its Berlin gigafactory, and issues in the Red Sea region, which is dealing with cut undersea cables and 14- to 18-day shipping delays.

Tesla has also faced some issues with its technology this year. In February, it recalled almost every vehicle it’s ever sold in the US due to an issue with Tesla’s warning lights. Multiple Tesla drivers have also complained to US transportation authorities, arguing that a Tesla Autopilot update released earlier this year didn’t address safety concerns.

Tesla has also dealt with many lawsuits, such as a fatal crash where its Autopilot software was active and another where it paid California counties $1.5 million for improper hazardous waste disposal. One fired Tesla worker is also suing the company for alleged racial discrimination, and a California judge has approved another racial discrimination class-action lawsuit against Tesla to move forward in the state.