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Breaking: Tesla Announces 10% Workforce Reduction

Elon Musk, the CEO of Tesla, announced plans to cut approximately 10% of the company's global workforce, affecting around 14,000 jobs. The decision comes amidst declining demand for electric vehicles and increased competition from Chinese manufacturers.



Tesla Announces 10% Workforce Reduction

In an internal memo leaked to Electrek, Musk described the move as a "difficult decision" necessary to streamline operations and enhance productivity. He cited the need to eliminate duplication of roles and functions as Tesla prepares for its next phase of growth.


"While this decision is challenging, it is essential for our company to remain agile and efficient," Musk stated in the memo. "By reducing our headcount, we aim to become leaner, more innovative, and better positioned for future growth."


Tesla's announcement follows its recent revelation of a drop in quarterly car sales, attributed to production challenges with its Model 3 and disruptions caused by external factors like the Red Sea conflict and an arson attack at Gigafactory Berlin.


The news of Tesla's workforce reduction coincides with a broader slowdown in electric vehicle demand, as indicated by recent industry figures showing a decline in electric car registrations in the UK. This trend suggests a potential shift back to petrol-powered vehicles among consumers.

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