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.

more photos...
  • 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.

Watch 700 HP “Old” Ford GT Go Full Burner, Hit 214 MPH With Ease

This second-gen modified example was actually faster than the latest GT down the exact same runway.

This Is What Fooling Around In Edd China’s Driveable Sofa Feels Like

We can’t even begin to imagine what other motorists would have thought seeing this… thing doing 70 mph.

TopCar’s Mercedes GLE Coupe Inferno 4×4*2 Wants To Be A [email protected] Off-Roader

It sure is no G-Wagen, but this modified GLE Coupe will go much further than the stock item.

G21 BMW M3 Touring Would Give Audi And Mercedes A Serious Headache

BMW has reportedly considered building an M3 Touring out of the new 3-Series – but probably won’t.

1200 HP Cadillac Escalade Spins All Four Wheels With Ease

This custom Cadillac Escalade has a 427 cubic-inch V8 with a pair of 76 mm turbochargers.

Tanner Foust And Genesis G70 Recreate Stunt From ‘Baby Driver’

The G70 performs a 180-reverse-to-drift maneuver within mere inches of a truck…

Hyundai Creta Driver Causes Severe Accident, Flees The Scene On Foot

The Korean crossover clipped a small Chevy hatch and sent it rolling down the road.

This Ford Focus RS Has 900 HP Running Through The Front Wheels!

In order to not shred its tires in mere seconds, a special ECU limits power at low speeds.

2019 Kia Proceed Is A Stylish Way To Stay Away From The SUV Hoi Polloi

No one wants an estate, so if you need the space but despise crosssovers, the Proceed might be the one for you.

Delta 4×4 Gives 2019 Suzuki Jimny A Costly Paris-Dakar Rally Makeover

The 2019 Jimny’s rally-raid looks take inspiration from a Suzuki LJ80 that completed the 1982 race.