Tesla lays off thousands of employees

13 Juin, 2018, 16:21 | Auteur: Auguste Feret
  • Tesla готовит массовые увольнения сотрудников

He even acknowledged the company has never turned a profit in its nearly 15 years of existence.

The cuts come as the company aims to shrink costs and become profitable, Musk said. 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.

Musk said the company would inform those who were affected by the reorganization this week.

In addition to spending more on righting ship with the Model 3 sedan, the company will have to shell out billions of dollars to build new vehicle and battery factories in China and Europe - not to mention on delivering a new crossover, sports auto and semi truck in the coming years.

The electric auto company needs the Model 3, its more affordable option, to succeed.

Shares of heavily shorted companies can at times get pushed higher as traders rush to buy stock to cover their short bets, triggering what is known as a 'short squeeze.' That has not happened so far for Tesla, according to S3 data.

Tesla has been trying to hit a 5,000 per week production target of its Model 3 sedans after facing initial production hiccups.

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Tesla told CBC News that it had over 42,000 employees around the world.

Shareholders reacted positively to the announcement, and Tesla rose more than 3 percent by the end of Tuesday, with a stock price of $342.62.

Musk ended his note to workers this week by underscoring the societal value of Tesla's hard work. In a Securities and Exchange Commission report filed at the end of December 2017, the company said it had 37,543 full-time employees, meaning at least 3,000 will be impacted.

As described previously, we are conducting a comprehensive organizational restructuring across our whole company.

In an email to employees, the executive noted that Tesla has rapidly grown over the past several years and some job positions are either duplicate or "difficult to justify" today.

Elon Musk is cutting 9 per cent of the workforce at Tesla Inc. For almost all of its history, Tesla has put up losses while investing heavily in technology, manufacturing plants and an extensive car-charging network.

This week, we are informing those whose roles are impacted by this action. Elon Musk went so far as to say he was sleeping on the factory floor while trying to work on the problems himself. As you know, we are also continuing to flatten our management structure to help us communicate better, eliminate bureaucracy and move faster. The company will seek to re-employ most Tesla employees at Home Depot stores at its own locations. After misjudging how quickly the auto maker would be able to mass-manufacture an electric vehicle for the first time, the CEO is pumping the brakes from years of hiring at breakneck speed. I'm deeply grateful for your many contributions to our mission.

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