Tesla to layoff 9 percent of workforce

Cornelia Mascio
Giugno 12, 2018

Tesla has laid off about nine percent of its employees, Electrek first reported. As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission. Toward the end of 2017, Tesla had around 37,000 employees. He said Tesla's rapid growth in recent years contributed to "duplication of roles" and the creation of jobs that the company could no longer justify.

Tesla said it plans to cut 9% of its workforce to cut costs and boost profitability. The firm has a sector weight rating and a $300 "fair value" price target on Tesla shares, which were up about 4% in pre-market trade Tuesday.

"These cuts were nearly 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", Musk said in his note.

Last month Mr Musk said the company was planning a wide-ranging reorganisation that would flatten its management structure. "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 auto companies who haven't gone bankrupt). We must continue to drive that forward for the good of the world.

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