Tesla is already noticing the effects of Xiaomi’s arrival: it announces a massive layoff of more than 10% of its global workforce

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tesla is already noticing the effects of xiaomi's arrival it announces a massive layoff of more than 10% of its global workforce
tesla is already noticing the effects of xiaomi's arrival it announces a massive layoff of more than 10% of its global workforce

Elon Musk’s company has just announced, via email, a cut that will amount to more than 10% of its global strength. We tell you all the details below.

During the last few months, we had witnessed different rumors that suggested the idea of ​​a mass layoff by Tesla. Finally, they have become a reality. The company led by Elon Musk has announced, through an internal email, a round of layoffs that translates into the reduction of more than 10% of its global workforce. The news was known just after the arrival of Xiaomi in the electric mobility sector, causing a significant earthquake among the most specialized public.

The text of the email, which has been leaked and collected by media such as Electrek , states that a reduction in staff is expected that would translate “ by more than 10% worldwide .” Alluding, mainly, to the lack of efficiency as a result of the duplication of roles that has occurred in response to the rapid growth of the company in recent years.

Seeking greater efficiency

As a result of the increase in staff, the company’s management team has recently had to carry out a “comprehensive review” in order to prepare for the ” next phase of growth .”

In this review, the decision has been made to dispense with “ more than 10% ” of the workforce globally. In this way, a strategy is chosen that is based on an increase in productivity through greater efficiency. Always without forgetting the “ innovative ” prism that the company boasts.

It is Elon Musk himself who signs the letter. Not before “ thanking everyone who leaves Tesla for their hard work over the years ” and highlighting that “ We are developing some of the most revolutionary technologies in automotive, energy and artificial intelligence. As we prepare the company for the next phase of growth, his determination will make a big difference in getting us there .”

More than 14,000 employees

According to the previously mentioned media, from just a few moments after the email was sent, some employees have no longer been able to access their systems. The percentage of layoffs announced corresponds to, at least, a total of 14,000 employees who are going to lose their jobs.

It has not been detailed which specific teams will be most affected. However, and according to the movements registered, everything seems to indicate that the process is not going to take long and Tesla seeks to once again be competitive in the market, and compete face to face with emerging companies in this field, such as Xiaomi, by taking actions like the one mentioned.

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Abraham
Expert tech and gaming writer, blending computer science expertise