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.

Nintendo may have accidentally just confirmed ‘Fortnite’ for Switch
That means we'll likely see new games announced for the year ahead, as well as new games announced for 2019, too. The information was found in the Switch eShop update, which mentions Fortnite .

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.

Related news:

Hot News

isis-killer-beheading-video-story-top Sporting Lisbon: President offers to resign on one condition after player crisis
Jun 12, 2018 - 22:16
Several of Sporting's players are protesting about de Carvalho's behaviour, with some even accusing him of "psychological violence".

isis-killer-beheading-video-story-top Warriors GM says team will give Kevin Durant whatever deal he wants
Jun 12, 2018 - 21:58
Want him to be happy and want him to know we want him as long as he wants to be here". It's been ridiculous getting to go on this ride with him in the playoffs.

isis-killer-beheading-video-story-top Woman dragged into lake and killed by alligator while walking dogs
Jun 12, 2018 - 21:46
But people in Matsuki's neighborhood had received other warnings about another body of water where she frequently walked her dogs. The dogs didn't want to leave the lake and were being cared for by Broward County Animal Care and Adoption, WSVN said.

isis-killer-beheading-video-story-top Video shows police sergeant rescuing child from busy roadway
Jun 12, 2018 - 21:39
She told the sergeant he had made it about two blocks from their home before he was saved by the quick-thinking cop. Then as he drew closer, Mannino realized it was actually a toddler wandering dangerously close to traffic.

Armed man 'with a bomb' holds three inside a shop
Jun 12, 2018 - 21:30
An armed man has taken a number of people hostage, according to reports, including a pregnant woman. The suspect reportedly doused two of the hostages with gasoline after the one managed to escape.

Real Madrid Appoint Lopetegui to Replace Zidane
Jun 12, 2018 - 21:27
The 51-year-old was a goalkeeper in his playing days, and played for both Madrid and Barcelona during his career. Julen Lopetegui the incoming Real Madrid boss .

isis-killer-beheading-video-story-top Ofo applies for e-scooter scheme license in San Francisco
Jun 12, 2018 - 20:55
Scooter startup Skip, Bird, Lime and Spin are among the rivals battling for a share in the scooter-sharing service market. The permits allow a maximum of five companies to operate 500 scooters each in San Francisco for a yearlong pilot program.

US Open condoles death of Maria Bueno
Jun 12, 2018 - 20:31
A self-taught prodigy, she brought grace to the game and was a dominant force, BBC Americas editor Leonardo Rocha writes. Bueno was admitted to the Nove de Julho hospital in Sao Paulo in May. "She played tennis until the very last moment".

What Really Sparked Trump's Outrage Over Trudeau's Statement?
Jun 12, 2018 - 18:55
Trump and then tries to stab him in the back on the way out the door", Navarro said to Fox NewsSunday host Chris Wallace. Michael Hayden testifies at a hearing before the Senate Armed Services Committee on Capitol Hill, on August 4, 2015.

isis-killer-beheading-video-story-top House GOP in tentative deal to help ‘Dreamers
Jun 12, 2018 - 18:45
The major hang-up in GOP talks has been how to offer citizenship to young immigrants brought to the USA illegally as children. Dave Brat, R-Va., said a proposal has been discussed but cautioned that there are "tons of moving pieces to it".

isis-killer-beheading-video-story-top Trump says to stop 'expensive', 'provocative' South Korea war games
Jun 12, 2018 - 18:44
Trump praised what had been achieved at the summit calling it a " new chapter " in relations with the North. However, Trump said North Korea sanctions would remain in place - for now.

isis-killer-beheading-video-story-top Dominos Is Filling In Potholes Across America To Save Your Pizza
Jun 12, 2018 - 18:34
On May 3, a Domino's spokesperson said the discovery was "an extremely isolated incident, confined to a single store". The good publicity will be a welcome change for Domino's following an incident last month in Tennessee.

isis-killer-beheading-video-story-top Resident Evil 2 Remake Revealed, January 2019 Release Date Confirmed
Jun 12, 2018 - 18:34
Players can expect fresh take on the stories of Claire and Leon, as they move around the city in a desperate effort to stay alive. Kennedy and Claire Redfield, as well as the mysterious Ada Wong and the ill-fated RPD officer Marvin Branagh.

isis-killer-beheading-video-story-top Deontay Wilder agrees to fight Anthony Joshua in world heavyweight unification fight
Jun 12, 2018 - 18:26
The offer also includes a rematch clause, which Joshua and his team insisted on, and Wilder is happy to accept that also. A fight between Joshua and Wilder would see all major heavyweight world titles on the line.

isis-killer-beheading-video-story-top Donald Trump G7 tweets ‘sobering and depressing’: Angela Merkel
Jun 12, 2018 - 18:02
"We won't let ourselves be ripped off again and again", Merkel said. This year's summit had a particular focus on trade.