PROVIDENCE – As Tesla Inc. plans to lay off more than 10% of its global workforce, potential impacts on Rhode Island operations – including those at the company’s recently-opened “hub” in Providence – remain uncertain.
In an internal email sent Monday morning, Tesla CEO Elon Musk told employees that the electric car company planned “to reduce our headcount by more than 10% globally.”
“Over the years, we have grown rapidly with multiple factories scaling around the globe,” Musk wrote in the email, first published and reported on by the digital news outlet Electrek.
“With this rapid growth there has been duplication of roles and job functions in certain areas,” Musk continued. “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’s plan means at least 14,000 workers will lose through jobs across the company, according to Electrek, with the company employing around 140,000 people worldwide.
A new Tesla hub, described as the largest in southern New England, opened in Providence in early March, with site owner Joseph Paolino Jr. previously telling Providence Business News that the 76,000 suqare feet site would create 30 jobs.
The company also has a location in Warwick.
Tesla did not return a request for comment on Tuesday morning, while Paolino said that he had “not heard from anyone concerning tesla layoffs.”
Earlier this month, Tesla reported an almost 9% drop in sales, the Associated Press reported, marking the company’s largest profit decline in four years.
But critics were quick to point to Musk’s personal wealth when condoning the announcement: According to Forbes, Musk is the richest man in the U.S., with an estimated wealth of $195 billion in 2024, having grown from $24.6 billion in 2020.
Two Tesla executives also announced on Monday that they would depart the company.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
