Tesla is cutting nine per cent of its workforce in a "comprehensive organizational restructuring", according to an internal email sent by its CEO Elon Musk on Tuesday. Musk said the layoffs won't affect production of the Model 3, since no production associates are being be cut.
Tesla has promised it will produce 5,000 Model 3 cars per week by July.
The rep also tells The Drive that the company is still hiring rapidly and that after this round of job cuts, Tesla will still boast more employees than it had at the beginning of 2018. Tesla ended last year with 37,543 employees, more than 12 times its headcount five years earlier.
The company will also not renew its contract with U.S. hardware chain Home Depot, which now sells the company's solar panels and home energy systems, though "the majority" of Tesla staff now placed in Home Depot stores will move over to Tesla retail positions.
Rafael Nadal clinches 11th French Open
If he did take a step in that direction, you would think, he would wear their clothing for the first time at Wimbledon next month. Only Nadal, Pete Sampras and Ken Rosewall have managed the feat of winning Grand Slam titles in their teens, 20s and 30s.
Justify wins the Belmont Stakes, earning the coveted Triple Crown
He won the Kentucky Derby by 2 1/2 lengths and then survived a half-length victory in the Preakness, both on sloppy tracks. The Belmont Stakes is the last of the Triple Crown races, after the Kentucky Derby and the Preakness Stakes .
Deontay Wilder Reportedly Agrees To Terms For Anthony Joshua Superfight
It's understood that Wilder accepted a two-fight deal which will entitle him to a rematch with "AJ" in the United States. Hopefully, we'll get an answer in the next day or two. "We've got to get to the bottom of it all today".
In the email, he said the cuts are aimed at eliminating duplicate roles and he does not expect them to affect the firm's production ability. The decision was made so Tesla can focus its efforts on selling solar power in its own stores and online, and the majority of employees working at Home Depot stores will be given the opportunity to move over to Tesla retail locations.
Tesla has not made an annual profit in its 15 years of doing business, and it has posted only two quarterly net profits.
Last month, Musk had hinted at a reorganisation but did not give details. Tesla share prices rose more than 10 percent after Musk made those pledges, but they fell back somewhat immediately after the layoffs came to light. The layoffs would hit about 3,800 employees, company-wide. Musk said Tesla is making the move now so it never has to do it again.
Tesla has been under intense pressure to prove that it can achieve mass production of the Model 3, its first mass market vehicle.
"It is very hard to say goodbye", Musk said in the letter.