Tesla plans workforce reduction of over 10% in view of streamling ops: Reports

Tesla plans to lay off "more than 10 per cent" of its global workforce, news site Electrek reported Monday, publishing an email from Chief Executive Elon Musk announcing the cuts.

The job cuts were needed after "rapid growth" that has led to duplication of roles, Musk said in the email to staff, according to Electrek, an online news site focused on electric vehicles (EV). "There is nothing I hate more, but it must be done," Musk said. "This will enable us to be lean, innovative and hungry for the next growth phase cycle."

The move comes about 10 days after Tesla reported a drop in first-quarter auto deliveries in a report that disappointed investors. Musk's company has also undertaken a series of price cuts on EV in response to rising competition among producers and slowing demand growth in some markets.

Tesla late last year began deliveries of the Cybertruck, a space age-inspired vehicle that Musk has effused over while warning that it would take time to ramp production to reach profitability. Shares of Tesla fell 0.4 per cent in pre-market trading.