According to a memo initially reported by the news website Electrek, billionaire owner Elon Musk informed employees that while it was a decision he disliked, it was deemed necessary.
As per Tesla's latest annual report, the company, considered the world's largest auto-maker by market value, had 140,473 employees worldwide as of December.
Tesla has yet to respond to the BBC's request for comment.
"We have conducted a comprehensive review of the organization and have made the difficult choice to reduce our workforce by more than 10% globally," Musk's email stated. "It's something I loathe, but it's essential. This will enable us to become leaner, more innovative, and eager for the next phase of growth."
An affected Tesla employee informed the BBC that he, along with all other laid-off staff, had been locked out of their emails.
The company is scheduled to release its quarterly earnings later this month. However, it has already reported a decrease in vehicle deliveries in the first quarter, the first such decline in nearly four years and below market expectations. Some analysts have characterized these results as "tumultuous."
Last month, Tesla scaled back production at its Gigafactory in Shanghai, and last week, it informed Cybertruck employees in Austin that shifts on the production line would be shortened.
Tesla is beginning to feel the effects of a slowdown in demand for electric vehicles (EVs).
Elon Musk recently refuted reports suggesting that the company had abandoned plans to produce an affordable car, a longstanding goal of his to make EVs accessible to the masses.
Tesla shares were down 0.8% in premarket trading on Monday.
The EV manufacturer has been slow to update its aging models, while high interest rates have dampened consumer interest in high-priced items.
Additionally, there is continued pressure from China as the proliferation of affordable EVs from the country has started to saturate the market with budget-friendly models. Photo by Raysonho @ Open Grid Scheduler / Grid Engine, Wikimedia commons.