Tesla will cut approximately 9 percent of its 46,000-person workforce.
Tesla told employees it will cut about 9 percent of its workforce, trimming mostly salaried positions.
Since the start of the year, Tesla has been adding to its staff and currently employs approximately 46,000 workers. Through this reorganization, it will shed about 4,100 jobs.
In mid-May, Tesla CEO Elon Musk had warned the company was undertaking a "thorough reorganization" and that it would flatten its management structure.
"To be clear, Tesla will still continue to hire outstanding talent in critical roles as we move forward and there is still a significant need for additional production personnel," Musk said in a letter to employees on Tuesday. "I also want to emphasize that we are making this hard decision now so that we never have to do this again."
Tesla has struggled to meet production targets and achieve profitability. It has been burning through billions in cash as it tries to scale up production of its mass market Model 3 sedan. Musk has said he expects Tesla to be profitable and cash flow positive in the third quarter.
A paragraph in Musk's long email to Tesla employees:
Quote:
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I would like to thank everyone who is departing Tesla for their hard work over the years. I'm deeply grateful for your many contributions to our mission.
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MM sez: Tesla was not a for-profit company; instead a pet project for Elon Musk. But now that Tesla is supposed to start operating as a company-for-profit with this Model 3 car... the "dream world" is crashing down upon Musk supporters that weren't being realistic. Oh, trust me... Musk knew all along that this step would eventually need be taken.