© Tesla Electronics Production | June 13, 2018
Tesla cuts 9% of workforce - ‘Difficult, but necessary’ says Musk
In a bid to reduce costs and to become profitable, the electric car manufacturer is laying off some 9% of its workforce across the company.
In a leaked email to the company – later published on twitter by Elon Musk himself – the CEO explains the decision saying that Tesla is currently conducting a comprehensive organisational restructuring across the 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,” Musk writes. In short, the company need to reduce its costs and become profitable, and a decision has been made to reduce the workforce. About 9% of Tesla’s employees will be let go. “These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months,” Musk stresses in the email. Elon points out that Tesla has never made an annual profit since its inception, saying that; “profit is obviously not what motivates us.” The company is currently informing employees affected by the decision. At December 31, 2017, Tesla had 37'543 full-time employees, as disclosed in the company's annual 10K. “To be clear, Tesla will still continue to hire outstanding talent in critical roles as we move forward and there is still a significant need for additional production personnel. I also want to emphasize that we are making this hard decision now so that we never have to do this again,” the email reads.