Select Page

Tesla to slash thousands of jobs in profitability drive

  • 12 June 2018

Tesla Model 3Image copyright Getty Images
Image caption Tesla’s Model 3 is crucial to the company’s profitability

Tesla said it plans to cut 9% of its workforce to cut costs and boost profitability.

The layoffs at Elon Musk’s electric car company come as it tries to increase production of its Model 3 sedan and turn a quarterly profit this year.

Tesla said the more than 3,000 cuts would affect salaried employees, excluding workers producing its cars.

Mr Musk said the job cuts were a “difficult decision”.

Tesla employed more than 37,000 people at the end of last year.

“Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us,” he wrote in an email to employees and posted on Twitter.

“What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we can eventually demonstrate that we can be sustainably profitable.”

Is Tesla heading for trouble?

Musk: No ‘bonehead’ questions please

Last month Mr Musk said the company was planning a wide-ranging reorganisation that would flatten its management structure.

The firm’s rapid growth has led to duplicate job functions, he wrote in the email.

Tesla employees based at US DIY chain Home Depot and involved with the home solar business Tesla acquired when it bought SolarCity are among those affected, he said.

The “majority” of those workers will be offered positions in Tesla’s retail business, Mr Musk added.

BBC News – US & Canada

Trump Seemed To Criticize US Journalists In Front Of Kim Jong Un
Here's How You Can Get Free Taco Bell Tomorrow, June 13th

Pin It on Pinterest

Share This
Read previous post:
Here’s How You Can Get Free Taco Bell Tomorrow, June 13th

TACOS FOR ALL. View Entire Post › BuzzFeed - Sports

Close