Tesla is reportedly planning to lay off about 10% of its workforce following poor sales in the first quarter.
CEO Elon Musk detailed the layoff plans in a memo sent to employees.
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The big picture: The layoffs could affect around 14,000 out of 140,473 workers employed by Tesla at the end of last year.
- Tesla’s shares fell 3% after news of the layoffs was announced, and have lost about one-third of their value this year.
- Competition, slower electric vehicle sales growth, and price cuts have resulted in a decline in Tesla’s sales.
- In the first quarter, Tesla delivered 386,810 vehicles, which is nearly 9% lower than the same period last year when they sold 423,000 vehicles.
What they’re saying: According to the Memo, as reported by the New York Times, as Tesla prepares for the next phase of growth, Musk said “it is extremely important to look at every aspect of the company for cost reductions and increasing productivity.”
