Tesla plans to lay off 10 percent of its global workforce, according to new reports.

Electrik, a news website that covers the electric vehicle market, was the first to report these incoming layoffs, citing an “internal company-wide email.” In that email, which the website reproduced in full, Tesla CEO Elon Musk blames rapid growth leading to “duplication of roles and job functions in certain areas,” as well as the need to cut costs and boost productivity.

“For those remaining, I would like to thank you in advance for the difficult job that lies ahead,” Musk concluded. “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.”

Tesla faced a decline in vehicle deliveries in its first quarter. According to Reuters, the company has also abandoned long-rumored plans to produce an even cheaper electric vehicle for the mass market. Tesla’s latest release, the Cybertruck, has experienced some production and delivery issues. Navigating those challenges will require an innovative, dedicated workforce skilled in multiple cutting-edge technologies, from hardware engineering to artificial intelligence (A.I.).     

Musk, who’s also the head of X (formerly Twitter) and SpaceX, is no stranger to initiating layoffs. Tesla has undergone rounds of cutbacks over the past several years, and X saw the majority of its workforce cut soon after Musk took it over in late 2022.

After a spike in January and February, tech industry layoffs have gradually declined, according to a crowdsourced analysis by levels.fyi. In addition to Tesla, prominent tech companies cutting workers have included TikTok, Apple, Amazon, Dell, IBM and Meta. CompTIA’s recent analysis of data from the U.S. Bureau of Labor Statistics (BLS) puts the unemployment rate for tech occupations at 3 percent, and the number of tech occupations throughout the economy increased by 203,000 in March.