Tesla is Laying Off 9% of Workforce as a Part of Restructuring Plan
Last month, Tesla CEO Elon Musk announced vague plans to restructure the company in order to achieve profitability before the end of this year.
Difficult, but necessary Tesla reorg underway. My email to the company has already leaked to media. Here it is unfiltered: pic.twitter.com/4LToWoxScx
— Elon Musk (@elonmusk) June 12, 2018
In a tweet from Musk today, he revealed the email he sent to employees about the “thorough reorganization”. The electric car company is laying off 9 percent of its global workforce. In the email, Musk said:
“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 nine per cent of our colleagues across the company. 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 said that due to the company’s rapid growth over the past few years, there have been some duplicated roles and job functions. Given that Tesla has never made an annual profit in almost 15 years, Musk said that profitability is not what is motivating the company. However, Musk did say that this is a goal for the company this year.
In the email, Musk also announced that Tesla will not be renewing its residential sales agreement with Home Depot in order to focus on selling their product through Tesla stores.
“The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations.”
Musk closed the email by saying that Tesla will be providing a significant salary and stock vesting opportunity to the employees being laid off.