The company's cuts, which have nearly doubled its total number of employees since the end of 2020, are considered one of the examples of the effects of more competition and less demand in the electric car industry.
According to a report from Reuters, an email CEO Elon Musk sent to workers over the weekend attributed the planned layoffs to the need to “cut costs and increase productivity.”
No statement was made about the slowdown in demand for electric vehicles or Tesla sales.
“We have thoroughly reviewed the organization and made the difficult decision to reduce our headcount by more than 10 percent worldwide,” Tesla wrote in an email to employees.
Tesla reported a year-on-year decline in sales in the first three months of this year.
Other automakers, including General Motors and Ford, have also reduced their production of electric vehicles due to weaker-than-expected demand for these products.
In general, electric vehicle sales continue to increase across the industry, but not as fast as expected.
Electric vehicle sales in the USA increased by 40 percent last year and exceeded the 1 million mark for the first time.
