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Tesla To Lay Off 10% Of Global Workforce, Cites Role Duplication, Cost Reduction - PorscheClassy Media
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Tesla To Lay Off 10% Of Global Workforce, Cites Role Duplication, Cost Reduction

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Tesla plans to lay off 10% of its global workforce as demand for electric vehicles (EV) declines.

According to a Bloomberg article published on Monday, Elon Musk conveyed the downsizing to employees at the automobile company via a memo.

Musk cited duplication of duties and the necessity to save expenses as reasons for the reduction.

“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,” Musk wrote.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 per cent globally. There is nothing I hate more, but it must be done.”

Responding to a comment on the planned layoff on X, Musk said “about every five years, we need to reorganize and streamline the company for the next phase of growth”.

If the cuts apply companywide, the dismissal would amount to more than 14,000 employees, the publication noted.

Tesla ended 2023 with 140,473 employees, nearly double its workforce three years ago.

The decision to lay off workers comes as Tesla faces declining sales and an intensifying price war for EVs.

According to the publication, Tesla announced that vehicle deliveries early this month missed expectations by a wide margin, posting its first quarterly decline in four years.

“Several analysts are bracing for the EV maker’s sales to potentially shrink for the year, citing slow output of its newest model, the Cybertruck, and a lull in new products until the company starts producing a next-generation vehicle late next year,” the publication said.

“The EV slowdown Tesla has felt of late has been widespread. China’s BYD Co. delivered just 300,114 battery-electric vehicles in the first quarter, down 43 per cent from the final three months of last year, when it briefly pulled ahead as the world’s top EV seller.”

Manufacturers including Volkswagen AG, General Motors Co., and Ford Motor Co. have delayed, dialled back or altogether scrapped EV projects as customers protest high prices and a scarcity of charging points.

BIG STORY

Dapo Abiodun Meets Security Chiefs To Ensure Safety In Ogun

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Ogun State Governor, Dapo Abiodun, held a meeting on Monday with security chiefs in the state to review the current security landscape and reinforce preparedness measures.

In a post on X, the governor stated that he met with the “security chiefs in Ogun State today to assess the level of security in the state and the country as it relates to us.” He added that “As we often say, the best time to prepare for war is during a time of peace.”

Abiodun noted that Ogun remains one of the most stable environments in the country, saying, “Ogun State is currently regarded as one of the most peaceful states in Nigeria, if not the most peaceful, and it is important that we continue to protect and sustain that standing.”

He emphasized that maintaining the state’s peaceful reputation requires consistent vigilance and proactive engagement with security leaders.

Authorities explained that periodic sessions with security chiefs are essential to preventing threats from escalating, particularly at a time when insecurity is worsening in other regions of Nigeria.

The governor reiterated the need for early action, stating, “To maintain this position, we must stay proactive, strengthen our preparedness, and put in place the right measures to mitigate anything that could threaten our peace and stability.” He added that “This is not the first meeting of its kind, but it is a particularly important one, which is why we convened it today.”

Abiodun said the discussions form part of a broader effort to ensure that Ogun State remains safe for all residents. “These formed part of our remarks as we engaged with the service chiefs this morning, reaffirming our shared commitment to keeping Ogun State safe, peaceful, and secure for all,” he added.

The meeting was held against the backdrop of increasing attacks by suspected terrorists and bandits across the country.

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BIG STORY

JUST IN: South-West Governors Converge In Ibadan For Emergency Security Meeting

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Governors in the South-West region have gathered in Ibadan, the Oyo State capital, for an emergency meeting on the security situation affecting states in the zone.

Those in attendance include Governor Babajide Sanwo-Olu of Lagos State, Governor Biodun Oyebanji of Ekiti State, Governor Dapo Abiodun of Ogun State, Governor Lucky Aiyedatiwa of Ondo State, and the Deputy Governor of Osun State. They convened at the Ogun State Governor’s Office located in Agodi, Ibadan.

Although the exact reason for calling the emergency session has not been officially disclosed, the meeting is believed to be linked to rising security concerns across the country.

According to sources, the governors are expected to review prevailing security threats, consider measures to accelerate infrastructural development, and explore strategies to strengthen regional integration under the Development Agenda for Western Nigeria (DAWN).

The meeting will also involve an assessment of existing joint security operations, including ongoing activities of the Amotekun Corps, with emphasis on improving its operational capacity in response to emerging challenges.

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JUST IN: Atiku Abubakar Declares ADC Membership

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Former Vice President Atiku Abubakar has formally joined the African Democratic Congress (ADC).

Atiku made the announcement on Monday through his X account, where he posted a photograph showing his ADC membership card and added the caption, “It’s official.”

His move to the ADC follows his departure from the Peoples Democratic Party (PDP) in July.

 

More to come…

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