Media: Elon Musk's company will lay off 15 thousand workers
Shares of Elon Musk's Tesla fell Monday after the electric car maker announced plans to lay off «more than 10 percent» of its employees worldwide as demand for its electric vehicles faltered. decline in the face of fierce competition in the market.
According to the Daily Mail, Tesla CEO Elon Musk sent out an email over the weekend announcing upcoming layoffs. In the letter, Musk said the «difficult decision» to cut staff «will allow us to be lean, innovative and ready for the next cycle of growth.»
Tesla, which is scheduled to report quarterly earnings on April 23, reported lower deliveries cars in the first quarter, which was the first figure in almost four years and was below market expectations.
In a press release, the company blamed the drop in supplies on a drop in demand for EV cars, a fire at a plant near Berlin and problems with supply chain issues caused by the Red Sea conflict.
Rumors of impending layoffs have been circulating over the past few months after Tesla asked managers to identify critical team members, suspended stock awards and canceled annual evaluations for some employees , the report says.