## Tesla Announces Layoffs of Over 10% of Workforce
In a surprising move, Tesla CEO Elon Musk has announced layoffs affecting over 10% of the company's workforce. This news comes just weeks after reports of Musk planning to increase pay for Tesla engineers to prevent them from being lured away by OpenAI's higher salaries.
In an email to employees, Musk explained that the layoffs are necessary to cut costs and boost productivity as the company prepares for its next phase of growth. He acknowledged the difficulty of the decision but emphasized its importance for Tesla's future.
"Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth, there has been duplication of roles and job functions in certain areas. 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.
He added, "As part of this effort, we have done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10% globally. 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."
This news follows Tesla's disappointing vehicle deliveries earlier this month, which fell short of expectations and marked the company's first quarterly decline in four years. Experts suggest that Tesla's sales might shrink for the year due to slowing output of its newest model, the Cybertruck.
The layoffs come just months after Tesla reportedly cut about 10% of its salaried workforce in mid-2022. The company has been increasing production at two plants, one in Austin and the other outside Berlin. However, the recent decline in deliveries and the need to control costs have led to this latest round of job cuts.