Tesla (NASDAQ:TSLA) will lay off more than 10% of its global workforce, an internal memo seen by Reuters on Monday shows, as it grapples with falling sales and an intensifying price war for electric vehicles.

The world's largest automaker by market value had 140,473 employees globally as of December 2023, its latest annual report shows. The memo did not say how many jobs would be affected.

Some staff have already been notified of layoffs, a source familiar with the matter told Reuters, declining to be named due to the sensitivity of the subject.

"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," Tesla CEO Elon Musk said in the memo.

"As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally," it said.

Its shares were down $3.64, or 2.2%, in early Monday trading to $167.34.

The stock has fallen about 31% so far this year, underperforming legacy automakers such as Toyota and General Motors whose shares have rallied 45% and 20% respectively thanks to a slow consumer transition away from traditional internal combustion engine vehicles.