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Tesla lays off roughly nine percent of workforce

Tesla lays off roughly nine percent of workforce

Employees told the paper that they received "little or no warnings" before the firings, which reportedly targeted 400 to 700 employees, leading to "lowered morale through many departments".

Tesla is cutting nine percent of its workforce in an effort to achieve profitability, CEO Elon Musk announced in a note sent to employees that elaborated on a planned restructuring he publically announced in May. Musk stressed in the email to employees that the cuts will not affect its ability to reach Model 3 production targets in the coming months. A majority of Tesla employees working at Home Depot will get offers to work in Tesla's own stores. Each time, after a few quarters of small profits, Tesla would ramp up production of another vehicle model-first the Model X, then the Model 3-and rack up more big losses, as this chart from Bloomberg shows.

"Given that Tesla has never made an annual profit in the nearly 15 years since we have existed, profit is obviously not what motivates us", Musk wrote in an internal email Tuesday. We made these decisions by evaluating the criticality of each position, whether certain jobs could be done more efficiently and productively, and by assessing the specific skills and abilities of each individual in the company.




Elon Musk, CEO of SpaceX and Tesla, speaks during the International Space Station Research and Development Conference in Washington, DC in July 2017.

Tesla started 2018 with about about 37,000 employees globally and has hired thousands of employees since then. Moreover, he said that this round of layoffs is necessary so that "we never have to do this again". Year-to-date, Tesla's headcount is up roughly 15%.

Electrek on Tuesday also reported the company's layoffs and said the cuts began on Monday. But Musk has promised an acceleration of Model 3 manufacturing, which will allow the company to bring in a lot more revenue.


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