Electric vehicle manufacturer Tesla is laying off 10% of its staff worldwide, according to a company-wide email that leaked on Monday morning.
In December last year, Tesla said it had 140,473 workers. That means at least 14,047 employees are on the chopping block now.
In the email shared by EV news website Electrek, CEO Elon Musk said that as Tesla, Inc. prepares for its next growth phase, 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. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Musk said that past rapid growth had caused some duplication of roles and job functions at Tesla, leading to layoffs. “It is very difficult to say goodbye,” he said, thanking those leaving.
The South African billionaire thanked staffers who remain for the “difficult job that remains ahead.”
“We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there,” Musk concluded.
Tesla has two Canadian battery manufacturing equipment facilities in Richmond Hill and Markham, Ontario.
According to the Canadian law firm Samfiru Tumarkin LLP, as of February this year, Tesla had more than 1,200 employees in Canada working at 25 retail and service locations and the two manufacturing facilities mentioned above.
Daily Hive has asked Tesla if the layoffs have impacted Canadian staff. We will update this story when it responds.