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Electric car giant Tesla is cutting 14,000 jobs as sales slow.
Billionaire Elon Musk's environmentally friendly electric car company announced the layoffs, Elektrek reported.
Musk cuts staff via memo
Elon Musk reportedly contacted employees and the memo leaked into the mainstream media. Elektrek published the memo compiled by Musk, in which the automaker planned to cut 10% of its workforce.
“As part of these efforts, we conducted a thorough review of the organization and made the difficult decision to reduce our global workforce by more than 10%. 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 growth phase cycle,” Musk told the laid off employees.
According to the company's annual report, Tesla employs 140,473 people, and there have been signs of possible downsizing among that workforce for some time.
Musk's statement would end flatly: “To everyone who remains, I would like to thank in advance for the difficult task that lies ahead.” We are developing some of the most revolutionary technologies in automotive, energy and artificial intelligence. As we prepare the company for the next phase of growth, your determination will make a big difference in getting us there.”
As Bloomberg reported, Tesla eliminated stock bonuses and performance reviews last year. Performance-based stock awards were eliminated, but employees saw a pay increase to address the cost-of-living crisis. This came despite Musk's controversial statements at the Deal Book summit last November. Stock options in particular were mentioned.
Musk said: “The challenge is: How do we keep great people available to do the hard work of building cars when they have, say, six other options that are easier to do?”
“We are definitely trying to ensure everyone’s prosperity. We give everyone stock options.”
Musk also publicly entered the bidding war with rival artificial intelligence (AI) companies this month. We reported that the billionaire was at
So times have certainly changed for the automaker, as the man who appeared in the top 10 of the Forbes Rich List demonstrated his commitment to “everyone” at Tesla within months.
Tesla hopes to get things back on the path to recovery when it releases its quarterly earnings report on April 23.
Image: Ideogram
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