Tesla CEO Elon Musk announced that the company will lay off about 10% of its workforce globally, which is expected to affect 14,000 people. The decision was made to optimize the company's costs and increase productivity, in response to the duplication of roles and job functions that come with rapid growth.
By the end of 2023, Tesla had a total of 140,000 employees worldwide. In addition, Tesla's stock price has fallen about 31% since the beginning of the year, with the latest valuation at $544.7 billion.
This isn't the first time Tesla has laid off employees. In 2022, Tesla cut about 10% of its jobs due to pessimistic expectations about the economic outlook and suspended global hiring activities. Recently, Tesla adjusted its working hours at the Austin Gigafactory, from 12 hours to 11 hours during the day shift and 10.5 hours at night.
Meanwhile, Tesla's global car deliveries fell 8.5% year-on-year and 20.2% quarter-on-quarter in the first quarter, well below analysts' expectations, adding to concerns about the company's future performance. Future outlook: Tesla warned that growth in 2024 may be lower than last year, but the company is focusing on next-generation vehicles, energy storage, full autonomous driving and other projects to drive the next round of growth. Despite the challenges, Musk still holds the key card to maintain Tesla's leading position in the automotive industry.