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Tesla<\/a> Inc. will reduce global headcount by more than 10%, Electrek\u00a0reported<\/a>, as the carmaker grapples with a slowdown in electric vehicle demand.<\/p>\n Elon Musk cited \u201cduplication of roles and job functions in certain areas\u201d as the reason for the cuts, Electrek said, citing an email the chief executive officer sent to staff. Assuming the cuts apply company-wide, the dismissal would amount to more than 14,000 employees.<\/p>\n Tesla reported disastrous vehicle deliveries early this month, missing expectations by a\u00a0wide margin<\/a>\u00a0and posting its first quarterly decline in four years. Several analysts are bracing for the EV maker\u2019s sales to potentially\u00a0shrink<\/a>\u00a0for the year, citing slow output of its newest model \u2014 the\u00a0Cybertruck<\/a>\u00a0\u2014 and a lull in new products until the company starts producing a next-generation vehicle late next year.<\/p>\n \u201cAs 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,\u201d Musk wrote in the email. \u201cAs 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% globally. There is nothing I hate more, but it must be done.\u201d<\/p>\n Tesla ended last year with 140,473 employees, almost double its total three years earlier. It\u2019s been ramping up output at two plants \u2014 one in Austin, and the other outside Berlin \u2014 that started cranking out Model Y sport utility vehicles in early 2022. The company started\u00a0slashing prices<\/a>\u00a0across its lineup as those facilities reached higher volumes.<\/p>\n Tesla shares have slumped 31% this year, ranking among the worst performers in the S&P 500 Index. The stock slipped as much as 1.2% before the start of regular trading Monday.<\/p>\n Read More:\u00a0Tesla\u2019s Market Story Is About Growth. That\u2019s Now in Question<\/a><\/p>\n Tesla staff have been fearing potential job cuts since early this year, when managers were asked to affirm whether each of their employees\u2019 positions is\u00a0critical<\/a>. Some salaried employees also were told late last year that the company wasn\u2019t going to be offering merit-based\u00a0equity awards<\/a>\u00a0as part of annual performance reviews.<\/p>\n \u201cWe just have to chase down every penny possible,\u201d Chief Financial Officer Vaibhav Taneja said during Tesla\u2019s most recent earnings call on Jan. 24. \u201cWe have a strong team which is hyper-focused on this.\u201d<\/p>\n The EV slowdown Tesla has felt of late has been widespread. China\u2019s BYD<\/a> Co. delivered just 300,114 battery-electric vehicles in the first quarter, down 43% from the final three months of last year, when it briefly pulled ahead as the world\u2019s\u00a0top EV seller<\/a>. Manufacturers including Volkswagen<\/a> AG, General Motors<\/a> Co. and Ford Motor<\/a> Co. have\u00a0delayed<\/a>,\u00a0dialed back<\/a>\u00a0or altogether\u00a0scrapped<\/a>\u00a0EV projects as consumers balk at\u00a0still-high prices<\/a>\u00a0and a dearth of\u00a0charging stations<\/a>.<\/p>\n In its most recent major workforce reduction, Tesla\u00a0eliminated<\/a>\u00a0about 10% of salaried workers in mid-2022.<\/p>\n<\/div>\n\nSubscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up<\/a> for free.<\/div>\n