The American electric car manufacturer Tesla reportedly wants to cut more than one in ten jobs worldwide. Accordingly, 14,000 jobs will be affected by the job losses.
Tesla boss Elon Musk announced the job cuts in an internal communication, several media outlets such as the technical publication “Ectrek” and “Handelsblatt” reported on Monday, citing the letter.
“This will make us lean, innovative and hungry for the next phase of growth,” Musk wrote. He hates the step, but it’s necessary.
Tesla will present its figures for the past quarter next week. The electric car pioneer started the year with a significant decline in sales. It was the first time in almost four years that the company sold fewer vehicles than a year ago.
Fierce competition for newcomers in the sector
Tesla faces competition from newcomers in the industry, such as smartphone manufacturer Xiaomi in China and the growing range of electric cars.
The effect of price cuts and discounts is now waning, because Americans are only slowly updating their outdated model range and will only introduce major new products to the market next year. According to insiders, Tesla has also abandoned its plan to build a cheap electric car for the mass market.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
