Tesla will lay off about 15,000 people, more than 10% of its workforce, according to a company-wide email sent by Chief Executive Elon Musk, Electrek reported Monday.
In a message sent to Tesla employees, Musk says that as it prepares for the “next phase of growth” it is important that the electric vehicle maker strives to “lower costs and improve productivity.”
“As part of these efforts, we conducted a comprehensive review of the organization and made the difficult decision to reduce our workforce by more than 10% globally,” Musk added.
The announcement came just days after Tesla said its sales fell 8.5% in the first quarter of the year, a period during which the company’s shares lost nearly 30% of their value.
Tesla will release first-quarter financial results on April 23.
The company has also cut prices significantly in North America in recent weeks to stimulate demand and reduce its fleet.
Industry analysts point out that the period of rapid growth that characterized Tesla in recent years has ended with increased competition from traditional manufacturers, difficulties in reducing costs and a strong increase in electric vehicle production by Chinese companies.