Tesla To Lay Off 9 Per Cent Of Its Workforce

Tesla will cut roughly 9 per cent of its workforce as part of a restructuring led by chief executive Elon Musk.

Musk announced the layoffs in a lengthy email sent to the company’s more than 40,000 employees and shortly after, published the email on Twitter. The job cuts won’t be centered on factory workers but instead on salaried employees.

“As described previously, we are conducting a comprehensive organizational restructuring across our whole company. Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today,” the email reads.

“As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company.”

Musk says the job cuts won’t affect the automaker’s ability to hit its Model 3 production targets.

Tesla went on to say that it will unable to achieve its mission of accelerating the world’s transition to clean energy unless “we eventually demonstrate that we can be sustainably profitable.”

No mention of the job cuts was made during Tesla’s annual shareholder meeting on June 5. During that event, Musk said he expected the automaker to hit its 5000 unit a week production goal for the Model 3 by the end of June. Additionally, the company thinks it can be profitable later this year.

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  • Spyder Hole Fantome

    Must need more $$$$ for launching even more cars into space!

    • Jp

      What EV manufacturers are shining?

  • LJ

    It’s not a good sign if you need layouts to become profitable.

  • Iberian Rekluse

    Oh, so I guess money matters now.

  • Jp

    It’s a sad but probably necessary decision. Perhaps the immense pressure Musk received from the shareholder meeting is to blame here. Restructuring are never funny, but my guess is that employees won’t look very long before finding other opportunities considering how hot the job market is at the moment.

  • Alfa Giulia QV

    If I recall from the article I read yesterday, only salaried workers are being let go as Tesla tries to become more profitable. But as the other guy already said; it really isn’t a good sign when you need to lay people off in the hopes of turning a profit. The base level Model 3 should have done that. Of course, Tesla has yet to put that in production. Why? I have no idea. That’s the main reason people started reserving theirs in the first place.

    That should have taken priority over the dual motor Model 3.

  • BlackPegasus

    Layoffs now.
    Manufacturing in third world countries NEXT.

    • Spyder Hole Fantome

      Musk could have picked a much better state for Tesla manufacturing than California… the Bay Area no less (does it get more expensive than that? Manhattan perhaps?). Every established profitable manufacturer avoids CA for obvious reasons.

  • AxlRock

    It will mostly consist of people on work visas as they’re the easiest to let go. I can remember the smug faces of people who got hired at Tesla after graduation.

  • steve

    I wish Tesla had simply sold their technology to existing car manufacturers – rather than try to build cars themselves. Their USP is the technology – not the tin can around it.

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