Tesla CEO Elon Musk informed workers over the weekend that thousands of them will soon lose their jobs, according to a leaked memo to staff. Although Musk didn’t disclose an exact number, at least 14,000 workers are expected to have their roles slashed.
The memo follows months of speculation over potential cuts at the electric vehicle maker, which ramped up over the weekend, according to multiple reports. In February, Tesla began asking mangers to identify which jobs on their teams were essential.
The company employs more than 140,000 people around the world, with factories in China and Germany as well as its U.S. locations. Before these cuts, Tesla employed about 8 times as many people as it did in 2016. According to the leaked memo, more than 10% of employees will be laid off.
Read the full memo Elon Musk sent Tesla employees below:
Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, 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.
I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.
For those remaining, I would like to thank you in advance 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.
Thanks,
Elon