Tesla to Cut 9% of Workers Across Company

Galtero Lara
Junio 12, 2018

"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 hard to justify today".

"These cuts were nearly 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 in his note.

Tesla is reportedly planning to lay off approximately 4,100 of its 46,000 employees to cut costs.

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

Tesla started 2018 with about about 37,000 employees globally and has hired thousands of employees since then. 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
Tesla is shedding 9% of its workforce Musk said the moves would help the company become profitable Close

The number of Tesla employees has grown 15% in the past six months, according to insiders.

Tesla Inc. has followed through on a restructuring announced last month by cutting about 9 percent of its workforce, as Chief Executive Officer Elon Musk seeks a first annual profit for the electric-car maker.

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.

"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".

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