Tesla set for mass layoffs as Elon Musk confirms 9 per cent of staff to go

18w ago

66K

Comments (15)
Repost
Bumps(33)
Comments (15)
Repost
Bumps(33)

Tesla boss Elon Musk has confirmed the company is cutting nine per cent of its workforce as it grapples with losses running to hundreds of millions of dollars in the first quarter of 2018.

The electric carmaker employs an estimated 37,000 workers, meaning around 3,300 of them will be axed in what the firm calls a “comprehensive organisational restructuring” initiative.

Why now?

According to a leaked email, which was later tweeted by Musk, “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."

The cuts come at a time when Tesla and Musk himself are under huge scrutiny after the firm posted a net loss of $709.6m in the first quarter of the year, amid more delays in production of the Model 3.

“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,” Musk wrote. “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 eventually demonstrate that we can be sustainably profitable. That is a valid and fair criticism of Tesla’s history to date.”

But don’t Tesla need all of the manpower they can get?

Yes, amid a raft of production and financial woes the company needs to be making and selling new cars as quickly as possible, but Musk insisted Model 3 production targets will be unaffected by the layoffs.

He said: “These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability too reach Model 3 production targets in the coming months.”

What are your thoughts on the latest woes for Tesla? Vote below and let us know your thoughts in the comments.

Join in

Comments (15)
  • I hope they close down . I cant imagine my grandchildren not knowing the sound of a V8 in the future.Where car are all electric

    4 months ago
  • Tesla bought Solar City a while back... they bought a bloated workforce with a huge outside sales network, partnerships inside brick and mortar stores, and dense inside sales structures. Tesla’s long term solar model relies on owning roof tops and creating supply chains/installation networks for its solar products.... so they can charge their batteries. This is just the cutting cycle from that “bulking” phase.

    People forget Tesla is a battery company first; their secondary lines of business are the sex appeal that drives demand for their battery tech.

    Elon will go down as the greatest entrepreneur of all time. Carry on.

    4 months ago
    1 Bump
  • Remember when Tesla cut 400 employees to launch the car into space? Wonder what they're planning to do next. Open a factory in North Korea maybe.

    4 months ago
  • Cutting away the dead wood as would be expected .....NTSH

    4 months ago
  • Please President Trump cut the subsidy so that they will go down completely

    4 months ago
    2 Bumps

YOU MIGHT ALSO LIKE

5 of the wackiest ever Land Rovers
New pics: Mid-engined Corvette, next-gen Porsche 911 and 8-Series Convertible
The Ferrari 250 GT SWB Deserves a Special Caretaker