Tesla cutting 9% of jobs – Elon Musk
The billionaire Chief Executive said that the cuts were part of a simplification of Tesla’s management structure promised last month.
BENGALURU - Tesla Inc is cutting about 9% of jobs across the company, billionaire Chief Executive Elon Musk said on Tuesday, as it seeks to reduce costs without endangering the critical ramp-up of production of its Model 3 sedan.
Tweeting pictures of an email he said had been leaked to media, Musk said that the cuts were part of a simplification of Tesla’s management structure promised last month.
“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 9% of our colleagues across the company,” the email read.
“These cuts were entirely 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.”
Tesla’s latest annual filing last December showed it had 37,543 full-time employees.
Up nearly 7% earlier on Tuesday, shares of the company trimmed gains to stand 3.5% higher at $344 by early afternoon.
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