11/23/2020

Tesla to cut 9 percent of workforce in ‘difficult, but necessary’ reorganization

Tesla plans to cut 9 percent of its workforce, Electrek reported on Tuesday, in what CEO Elon Musk called a “difficult, but necessary reorg” that will impact salaried employees but spare the production line at its Fremont factory.

The Palo Alto-based car maker began layoffs on Monday, Electrek said, citing sources familiar with the matter.

As much as 9 percent of Tesla’s workforce, or about 3,000 employees, will be laid off, Electrek reported.

Only salaried employees will be laid off across various departments around the company, the company confirmed to the Business Journal on Tuesday. The layoffs will not affect manufacturing roles, which means the Fremont factory — which hosts thousands of workers feverishly working to produce its Model 3 sedan — won’t be impacted, it said.

Tesla must streamline its operations and reduce costs to finally become profitable, which it hasn’t attained in its 15 years, Musk said in a tweet on Tuesday, in which he posted what he said was an internal letter that had gone out to staff.

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