According to reports, Tesla sent an internal memo to its employees, informing them that the electric car maker plans to lay off over 10% of its total workforce.

CNBC released the purportedly full memo, written by Tesla CEO Elon Musk. He stated that it was “extremely important” that Tesla look at all parts of the company to help cut costs. He added:

As part of this effort, we conducted a thorough review of the organization and made the difficult decision to reduce our workforce by more than 10% worldwide. There is nothing I hate more, but it has to be done. This will allow us to be lean, innovative and hungry for the next cycle of growth.

Reuters It is also reported, through unnamed sources, that some workers have already been informed of the layoffs in California and Texas. Tesla, as of this writing, has not officially responded to these reports. its The share price fell by 4 percent Today with the start of trading.

As of December 2023, the company stated that it has 140,473 employees. This means that this new redundancy event will likely affect over 14,000 staff members.

Tesla is battling lower sales as more automakers begin ramping up their electric vehicles. Vehicle deliveries from the company decreased 8.5 percent in the first quarter of 2024. Its share price is also down 31% so far this year before trading today.

Earlier this month, Reuters also reported that Tesla decided to cancel plans to produce a more affordable electric car due to competition from Chinese companies. This report was denied by Musk himself, who accused Reuters of lying in a post about it His X account (formerly Twitter).. It will be interesting to see how Tesla plans to bounce back from these low sales and layoffs.