Tesla to lay off more than 10% of global workforce: report

Automotive firm Tesla will be laying off "more than 10%" of its workforce globally.

The layoffs come after a "thorough review" carried out within the organisation, CEO Elon Musk told employees in a memo obtained by CNBC.

"There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle," he said.

According to the report, Musk said there has been a duplication of roles and job functions in certain areas after the firm grew rapidly with multiple factories established around the world.

"As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity," he said.

The memo did not specify which roles will be affected by the layoffs, as well as the locations that will be most impacted by the changes, said CNBC.

"I would like to thank everyone who is departing Tesla for their hard work over the years. I'm deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye," Musk said.

Tesla had over 140,000 employees as of December 2023, according to the report, adding the layoffs come as the company sees slowing growth rate, with shares falling 31% year to date.

Tesla now joins the list of organisations carrying out layoffs this year, such as McKinsey and Co., Amazon, Sony, among others.