Electric vehicle maker Tesla has confirmed plans to lay off more than 10 per cent of its global electric vehicle workforce.

In an internal memo sent to staff on Monday, Tesla chief exec Elon Musk said that the cuts “must be done” to enable the company to be “lean, innovative and hungry for the next growth phase cycle."

The company had around 140,000 staff globally as of December 2023.

Laid off staff were informed on Monday, with a now former employee telling the BBC that they had subsequently been locked out of their email.

Along with the cuts, two senior leaders – Drew Baglino, a senior vice president overseeing battery development, and public policy vice president Rohan Patel – also announced their departures.

Tesla has struggled to keep up with changes to demand in the EV market, with established luxury manufacturers increasingly gaining traction in the space. The company also diverted resources from an entry level EV set to cost around $25,000 to the poorly received Cybertruck, with Musk in his memo confirming that the inexpensive car project had been defunded with many people working on it laid off.

Musk has recently said that the company would shift its focus to self-driving taxis, posting on Twitter – now X – that the 'Tesla Robotaxi' would be unveiled on 8 August.

Tesla shares this year have dropped by a third, with Musk facing increasing pressure from investors to step aside. Musk however has showed no sign that he plans to step down from his role as chief executive.

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