Tesla is to cut more than a tenth of its workforce worldwide, equivalent to an estimated 14,000 employees, the Electrek tech publication reported on Monday, citing an internal email from Tesla boss Elon Musk.
As part of efforts to cut costs and increase productivity, "we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally," Musk writes, according to the email cited by Electrek.
Tesla's staff complement stood at more than 140,000 at the end of last year, according to its annual report.
Tesla surprised analysts by reporting a dip in sales in the first quarter, when it sold almost 387,000 vehicles, down from last year's figure by more than 8%.
US customers are buying cars powered by combustion engines or hybrids, and in China Tesla is experiencing competition from domestic manufacturers.
Attacks by Yemen-based Houthi rebels on shipping through the Red Sea has caused supply problems for production at Tesla's large Grünheide plant near Berlin. The plant was also hit by sabotage to its electric power supply earlier this year.
German business daily Handelsblatt reported that Grünheide would be affected by the jobs cut, with some 3,000 of the labour force of 12,500 let go. It cited internal Tesla sources.
According to the email from Musk cited by Electrek, rapid growth has led to a "duplication of roles and job functions in certain areas."
"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," Musk wrote.