Tesla to lay off 9 percent of workforce to remain "profitable"

2018-06-13 01:37:35 GMT2018-06-13 09:37:35(Beijing Time) Xinhua English

SAN FRANCISCO, June 12 (Xinhua) -- Tesla Chief Executive Officer(CEO) Elon Musk said Tuesday that his company is going to slash 9percent of its workforce to keep it profitable and sustainable.

In an email to Tesla staff, Musk said that the company isconducting a comprehensive, across-the-board organizationalrestructuring.

"Tesla has grown and evolved rapidly over the past severalyears, which has resulted in some duplication of roles and some jobfunctions that, while they made sense in the past, are difficult tojustify today," he said.

"As part of this effort and the need to cut costs and becomeprofitable, we have made the difficult decision to let go ofapproximately 9% of our colleagues across the company," said theTesla CEO.

He said the job cuts are mostly aimed at salaried employees andwill not affect the production workers assembling the company'svehicles.

"This will not affect our ability to reach Model 3 productiontargets in the coming months," he wrote.

Musk said Tesla has been continuing to flatten its managementstructure to help it communicate better, eliminate bureaucracy andmove faster.

Tesla has decided not to renew a residential sales agreementwith Home Depot, and would focus instead on selling its solarproducts through its own stores and website, he said.

"The majority of Tesla employees working at Home Depot will beoffered the opportunity to move over to Tesla retail locations," heexplained.

Silicon Valley-based Tesla had about 37,500 employees at the endof 2017, after it acquired the solar panel maker SolarCity Corp. inan ambitious expansion effort. Enditem

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