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Elon Musk Confirms Tesla Is Laying Off 9 Per Cent Of Its Workforce

Tesla CEO Elon Musk says that the company has noticed duplications of roles and some job functions, which made sense in the past but are difficult to justify today.

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Elon Musk says that 9 per cent of workforce from across the company

Highlights

  • Tesla is doing a comprehensive organisational restructuring
  • Tesla will let go of approximately 9 per cent of workforce
  • Tesla Model 3 production targets won't be affected by the lay off

Tesla, Inc. CEO, Elon Musk, has announced that the company is laying off about 9 per cent of its workforce as part of a comprehensive organisational restructuring. Musk posted the email he sent to the company on his Twitter handle, stating that it's a difficult, but necessary reorganisation for Tesla and that it's already underway. Musk also mentioned in his tweet that his email was leaked to the media and the one he has posted on Twitter is the actual and unfiltered one.

Also Read: 10000th Tesla Supercharger Inaugurated, Located in Canada

Explaining the reason behind this restructuring (basically lay off), Elon Musk's email states, "Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplications of roles and some job functions that, while they made sense in the past, are difficult to justify today. 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 per cent of our colleagues across the company." Musk also added, "These cuts were almost 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."

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Also Read: Almost 23 Per Cent Of Tesla Model 3 Reservations In The USA Cancelled So Far

Musk also stated that in order to minimise the impact on the employees that are being laid off, Tesla will be providing them with a significant salary and stock vesting proportionate to the length of service in the company. Furthermore, he also emphasised the fact that Tesla will continue to hire people for critical roles moving forward, in fact, they are still in need of additional production personnel as well.

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This is not the first time Tesla has laid off employees this year. Early this year, in May, the company announced that it will be ending the contract of all underperforming contractor companies, mainly targeted towards removing all middle-managers that have been adding cost to the company but not doing anything.

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