Tesla Inc. (NASDAQ:TSLA) is reducing over 10% of its global workforce, according to an internal email sent by CEO Elon Musk on Monday.

He said the company carried out a “thorough review of the organization” and that the decision will “enable us to be lean, innovative and hungry for the next growth phase cycle.” He added that Tesla is developing “some of the most revolutionary technologies in auto, energy and artificial intelligence” and thanked the remaining employees in advance for the “difficult job that remains ahead.”

At the end of 2023, Tesla had 140,473 employees. The automaker’s stock has lost over 31% of its value this year, compounded by weak delivery figures for the first quarter.

Tesla shares plummet over 4% during the trading session.

Tesla’s senior VP Baglino resigns

Tesla Inc.’s Senior Vice President of Powertrain and Energy Engineering Drew Baglino on Monday revealed that he decided to leave the company after 18 years.

“I made the difficult decision to move on from Tesla after 18 years yesterday. I am so thankful to have worked with and learned from the countless incredibly talented people at Tesla over the years,” Baglino said in a post on X, formerly known as Twitter.

Baglino joined the electric carmaker in 2006 as a junior electric engineer and in October 2019 he was appointed senior vice president.