Tesla Lays Off 9 Percent of Their Workforce

[William Maley]

In a staff-wide email sent today, Tesla CEO announced that the company would be laying off nine percent of its staff across the company. The cuts comes as part of "an effort to reduce costs and become profitable.”

“Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us. What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable. That is a valid and fair criticism of Tesla’s history to date,” wrote Musk.

The layoffs will not effect workers on the production, instead focusing on those working in various white-collar positions. Musk stressed this will not affect plans on reaching production targets for the Model 3 in the coming months.

“Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today,” Musk wrote.

Those being laid off will get "significant salary and stock vesting" by the company.

Source: Bloomberg, Fortune, Roadshow

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[David]

Musk has his key supporters that are some of the largest investors and right now they still believe in him. Yet with that said, enough small investors have now raised the when are you going to break even and better yet make a profit?

If they are still losing money this time next year, I would expect some Executive changes. This is going to be a disruptive year at Tesla.

[riviera74]

Someone needs to take bets as to whether Tesla survives the next 24 months.  I will take the under.

[daves87rs]

So it starts.....