Electric car giant Tesla is cutting 14,000 jobs as sales slow.
Billionaire Elon Musk's ecological electric car company announced the holidays, as reported by Electrek.
Musk cuts staff with memo
Elon Musk reportedly reached out to staff and the memo reached the mainstream media. Elektrek released the memo drafted by Musk that ordered the automaker to cut 10% of its workforce.
“As part of this effort, we have undertaken a complete 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 has to be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle,” Musk would tell axed staff.
Tesla employs 140,473 people, according to the company Annual report and that workforce has endured signs of a potential layoff for some time.
Musk's statement would end emphatically “For those who remain, I'd like to thank you in advance for the hard work ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for its next phase of growth, your determination will make a big difference in getting us there.”
Like Bloomberg reported, Tesla canceled stock bonuses and performance reviews over the past year. Merit-based share awards were scrapped, but employees saw a pay rise to tackle the cost-of-living crisis. This was despite Musk's controversial statements in Book of agreement summit last November. Stock options were mentioned the most.
Musk said: “The challenge is: How do we keep big people doing the hard work of building cars when they have, like, six other options they can do that are easier?
“We certainly try hard to ensure everyone's prosperity. We give everyone stock options.”
Musk also publicly entered into a bidding war with rival artificial intelligence (AI) companies this month. We reported that billionaire took to X to talk about the need to collect high-profile experts for massive salaries to keep their heads in the competition to be America's top AI solutions provider.
So times have certainly changed for the carmaker, with the man appearing in its Top 10 Forbes Rich List summarizing his commitment to “everyone” at Tesla in the space of a few months.
Tesla hopes to get things back on the road to recovery when its April 23 quarterly earnings report rolls around.
Image: Ideogram
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