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Billionaire entrepreneur Elon Musk has announced that Tesla will be slashing 10% of its global workforce, amounting to approximately 14,000 jobs, as the company faces mounting financial challenges.

The news, revealed through bulk emails sent late Sunday, comes amidst reports of dwindling revenue, soaring operational costs, and tepid demand for electric vehicles (EVs). Musk, known for his ambitious ventures and unconventional leadership style, conveyed the difficult decision in a message to employees, emphasizing the need for cost reductions and increased productivity to position Tesla for its next phase of growth.

"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," Bloomberg cited Musk as writing in the email. "There is nothing I hate more, but it must be done."

The immediate impact of the layoffs was felt as Andrew Baglino, Tesla's senior vice president for battery development, announced his departure on social media platform X. Musk responded with gratitude for Baglino's contributions, signaling a bittersweet farewell to a longstanding member of the Tesla team.

However, industry analysts have sounded alarm bells, viewing the mass layoffs as a troubling sign of deeper challenges within the company. Dan Ives, managing director at Wedbush Securities, described the move as "ominous," suggesting that it hints at potential difficulties ahead for Tesla, despite its previous growth trajectory.

"It's an ominous sign of some dark days ahead," Ives remarked. "Streamlining is one thing, but the size of this cut is a concern for a company that's still in growth mode."