A report published by CNBC reveals that American company Tesla has likely reduced its global workforce to around 121,000 people, including temporary workers, indicating that the renowned automaker cut its employee numbers by more than 14% this year.
The report clarifies that the mentioned employee count of approximately 121,000 is not based on precise or official data, but comes from the number of individuals listed in the company-wide email sent in June. According to the report, Tesla's CEO, the renowned billionaire Elon Musk, sent an email to all employees stating: "In the coming weeks, Tesla will conduct a comprehensive review to provide stock option grants for exceptional performance."
Tesla has downsized by at least 14% this year after Elon Musk said layoffs would exceed 10%. In April, the famous electric vehicle company announced layoffs, when Musk sent a company-wide email informing employees that Tesla would be letting go of about 10% of its staff. A statement from Bloomberg at that time indicated that Musk aimed to reduce the workforce by 20% or more. During a call about the company's first-quarter earnings in late April, Musk noted that Tesla was experiencing an inefficiency rate ranging from 25% to 30%.
The report also mentions that in its fourth-quarter data from last year, Tesla stated that its global employee count was 140,473 by the end of December, which included salaried and hourly employees. The report clarifies that the company-wide email list, which includes temporary workers, contains approximately 121,000 employees, indicating that Tesla has reduced its total workforce by about 14% at least since the end of 2023.
