Tesla laying off 9 percent of workforce

Markets Insider

Tesla said it plans to cut 9% of its workforce as part of a restructuring meant to reduce costs and boost profitability. The areas were to be outfitted during the first half of this year and staffed by Tesla employees to demonstrate that its panels and batteries have mainstream appeal.

Tesla, which also operates SolarCity, is only laying off salaried employees.

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.

Tesla has struggled in recent months to resolve nagging production issues surrounding the Model 3 roll-out.

"Given that Tesla has never made an annual profit in the nearly 15 years since we have existed, profit is obviously not what motivates us", he wrote in an email to employees and posted on Twitter.

Disclosures show Kushner's wealth and debt have risen
White House officials are required to report their assets in broad ranges, making it impossible to discern whether Mr. Trump and Kushner aren't the only White House staffers raking in the millions, however.

The cutbacks come at a time when Chief Executive Elon Musk has said Tesla would be profitable in the third and fourth quarters.

"We are a small company in one of the toughest and most competitive industries on Earth", Musk wrote. Year-to-date, Tesla's headcount is up roughly 15%.

In the note, which he tweeted out after it was leaked to media outlets, Musk said that almost all of the cuts would be salaried positions, and that the production staff is largely unaffected.

Musk also announced that the company's solar panel unit has made a decision to end its agreement to sell via Home Depot stores so it can focus on sales in Tesla's company stores and online. The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla's retail locations, according to the memo. "It is very hard to say goodbye", the CEO wrote. We are a small company in one of the toughest and most competitive industries on Earth, where just staying alive, let alone growing, is a form of victory (Tesla and Ford remain the only American vehicle companies who haven't gone bankrupt).

The company is making the move now so it never has to do it again, he wrote. We must continue to drive that forward for the good of the world.

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