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There will be heavy layoffs at Tesla. The Bloomberg news agency found that out from an internal email Elon Musk sent to staff. Specifically, the workforce will shrink by 10 percent after a disappointing first quarter.

Earlier this month, Tesla announced its figures for the first quarter of 2024. These showed that substantially fewer electric cars had been sold. According to analysts, this was due to increasing competition from China and parts supply problems. The disappointing sales figures will now have a major impact on the company's employees.

10 percent of jobs

The Bloomberg news agency was able to view an internal email sent by CEO Elon Musk. The email was sent to all staff members and reports that a major round of layoffs will take place. "As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company with an eye toward cutting costs and increasing productivity."

Specifically, 10 percent of staff would lose their jobs. Since there are some 140,000 people working for Tesla worldwide, that would mean some 14,000 people would lose their jobs.

Disappointing first quarter

The round of layoffs is thus the result of a disappointing first quarter. In it, Tesla was able to sell 386,810 vehicles worldwide. That figure was well below the forecast. In fact, Tesla was predicted to deliver 449,080 cars in the first quarter of 2024. Compared to the first quarter of 2023, this is an 8 percent decrease.

In a press release at the time, Tesla announced that there were several reasons for the disappointing sales figures. First, an update to the Model 3 production line in Fremont, California caused a delay in production. A fire at the factory in Grünhede, Germany, also caused delays. In addition, Tesla also pointed to increasing competition from China. Those companies also receive a lot of state aid, which allows them to reduce their prices. Finally, central banks' tightening monetary policy was also cited as a reason. This would make it more difficult for many people to buy a new car.

© The Content Exchange, source News