Tesla announces layoffs to streamline operations and ensure growth

Tesla, the world's largest auto-maker by market value, has revealed plans to lay off more than 10% of its global electric vehicle workforce. This decision comes as part of a strategic move to streamline operations and position the company for future growth.

In a memo obtained by news website Electrek, Tesla's billionaire owner Elon Musk expressed his regret over the layoffs, stating, 'There is nothing I hate more, but it must be done.' The company, which currently employs 140,473 people worldwide, aims to become more agile, innovative, and prepared for the next phase of expansion.

Following the announcement, affected employees reported being locked out of their work emails, signaling the immediate impact of the workforce reduction. Andrew 'Drew' Baglino, a long-time Tesla employee, also announced his departure from the company after 18 years of service.

Despite the lack of official comment from Tesla on the matter, the layoffs underscore the challenges faced by the electric vehicle industry amidst evolving market dynamics and competitive pressures.

Tesla's decision to downsize its workforce reflects the company's commitment to operational efficiency and strategic growth. While the layoffs may bring short-term disruptions, they are intended to position Tesla for long-term success in the rapidly changing automotive landscape.