That's according to an internal memo seen by Reuters on Monday (April 15).

The electric vehicle maker is facing soft demand in a highly competitive market and a price war.

The world's largest automaker by market value had 140,473 employees globally as of December last year.

The memo did not say how many jobs would be affected.

CEO Elon Musk said in the memo, "it is extremely important to look at every aspect of the company for cost reductions and increasing productivity."

Tesla did not immediately respond to a request for comment.

The automaker is due to report its quarterly earnings on April 23.

It is braced for a slowdown in 2024 after years of rapid sales growth.

It reported a decline in vehicle deliveries in the first quarter - that was its first in nearly four years.

The company has also ended plans to produce an inexpensive car, meaning it abandoned one of Musk's longstanding goals to make affordable EVs for the masses.