On Sunday night, Elon Musk, the CEO of Tesla, sent out a memo to all employees informing them that over 10% of the workforce will be laid off. The email explained that the job cuts are necessary because the company has grown so fast that some roles are now duplicated. Musk emphasized that reducing the number of employees will help Tesla remain innovative and prepared for future growth. Yes, many people were surprised, and some will scream big, bad, Tesla, but it shouldn’t have been an overall shock. The layoffs come at a time when Tesla is experiencing a slowdown in demand for its electric vehicles (EVs) and a significant drop in its stock price.

Tesla CEO Elon Musk said in the memo, seen by BI, there’s been a “duplication of roles and job functions in certain areas” as the company has grown rapidly.