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April 15 (UPI) -- Elon Musk told his Tesla employees that the company will lay off more than 10% of its workforce in one of its largest workforce reductions at the company. The electric vehicle news website Electrek.co posted a memo Musk sent employees, following up on rumors of layoffs. Musk said executives will share lost jobs in the cost-cutting move and it was something he "hates" to do but added that it "must be done."
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"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 said in the companywide email memo, according to Electrek.
"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% globally. ... This will enable us to be lean, innovative and hungry for the next growth phase cycle."
According to CNBC, Tesla had 140,473 workers around the world as of December. Tesla's stocks had taken a significant hit lately, losing 31% over the past 12 months -- and another 3% Monday morning with the initial news of the layoffs.
Tesla, which had dominated the EV market for years, is now facing headwinds in sales. China's BYD briefly topped Tesla last year as the global top electric vehicle maker.
The electric car giant is also facing some challenges in court. A Delaware court in January struck down Tesla's board of directors' $56 billion compensation package for Musk, who serves as CEO of the company.
Shareholder Richard Tornetta brought the lawsuit against Tesla and Musk for unfair compensation, ordering Musk to pay back what he has received so far.
In addition to his role at Tesla, Musk also is the founder and chairman of SpaceX, owns social-media platform X and tunnel-construction company the Boring Co., among other business ventures.
