Tesla CEO Elon Musk sends an internal memo revealing plans to lay off more than 10% of the company's global workforce. Musk cited the necessity for cost reductions and heightened productivity as Tesla braces for its next growth phase. 

Business Insider shares Musk's memo below:

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.

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. 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.

I would like to thank everyone who is departing Tesla for their hard work over the years. I'm deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.

Thanks,

Elon

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How The Industry Reacted to Elon Musk's Memo

Unfortunately, the announcement has reverberated across EV and financial industries, raising concerns about the company's stability and future direction.

According to CNBC, Elon Musk's decision to implement massive layoffs caused Tesla's stock to decline by approximately 1.20% during premarket trading around 7:30 a.m. ET on the day of the announcement. 

This suggests that investors reacted negatively to the news of the layoffs, contributing to a decrease in Tesla's stock value, already down over 31% year-to-date. 

Per Business Insider, employees within Tesla had already been on edge about impending layoffs, with reports of managers being instructed to compile lists of names for upper management review. This latest development marks the first major round of layoffs since Tesla's Buffalo, New York plant saw job cuts in February 2023, a move that was met with legal challenges alleging unfair labor practices.

With Tesla scheduled to report its first-quarter financial results later this month, investors and analysts are closely monitoring the situation, with many questioning the timing and implications of such a "drastic workforce reduction."

READ MORE: IBM Seeks Volunteers for Layoffs, Targeting 80% Reduction in Worldwide Staff