Saturday 18th August, 2018
24.2
73 ℉ | 92 ℉Harrisburg
tesla-cites-restructuring-will-slash-thousands-of-jobs

Tesla cites restructuring, will slash thousands of jobs

Sheetal Sukhija - Thursday 14th June, 2018

CALIFORNIA, U.S. - In a bid to reduce costs and turn a quarterly profit this year, the electric car company, Tesla has announced lans to layoff 9 percent of its workforce.

The company said that about 3,500 workers, mostly salaried employees would be affected by the layoffs.

Tesla has stated that it is reducing its workforce as part of its restructuring plans that are aimed at not only reducing costs but also boosting profitability.

Making the announcement in an email to employees, which he then posted on Twitter, Elon Musk said that the job cuts were a "difficult decision.”

He wrote, "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. 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."

Musk added that the cuts are aimed at eliminating duplicate roles and pointed out that Tesla employees based at U.S. DIY chain Home Depot and involved with the home solar business that Tesla acquired when it bought SolarCity are among those affected.

He further wrote that the majority of those workers will be offered positions in Tesla's retail business.

At the end of 2017, the company employed over 37,000 people and the ‘wide-ranging reorganization’ plans were unveiled by Musk last month, who said that the plans would flatten the company’s management structure.

The company, which is currently trying to increase production of its Model 3 sedan, said in its announcement that the cuts would not affect the firm's production ability.

Earlier this year, Tesla posted its largest quarterly loss, of more than $700 million.

In his email, Musk wrote that the layoffs were part of a restructuring to make the company "communicate better, eliminate bureaucracy and move faster." 

The announcement was received positively by shareholders, and Tesla rose more than 3 percent by the end of the day. 

More Pennsylvania State News

Access More
Loading data...
{{item.TITLE}}

{{item.SOURCE}}

Pennsylvania State News.Net

{{item.TITLE}}

{{item.SOURCE}}

Pennsylvania State News.Net

Sign up for Pennsylvania State News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!