Tesla To Lay Off 9% Of Workforce In Restructure Shift

Last month, Tesla CEO Elon Musk announced a vague plan to “restructure” the company in order to achieve profitability during the second half of the year.

Following the announcement, Electrek has now learned of a round of layoffs currently ongoing at Tesla, which could see as much as 9% of the workforce leave the company.

In an email sent to employees last month and obtained by Electrek, Musk announced “a thorough reorganization” of the company:

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carloslassiter - 6/12/2018 3:30:03 PM

-3 Boost

One word for you: Robots.

MDarringer - 6/12/2018 3:48:05 PM

+1 Boost

SheBots!

TomM - 6/12/2018 4:15:02 PM

+2 Boost

Mr. Musk has already announced that he will NOT need more financing to keep the company running - as a result - he is doing things to try to make that happen - including reducing costs.

TheSteve - 6/12/2018 6:51:19 PM

+1 Boost

@TomM: Elon made this claim before. The analysts said he'd have to tap capital markets before two fiscal quarters passed. Analysts +1, Musk 0.

It's weird when external financial analysts have a better handle on Tesla Motors' financials than their own CEO does :-/

SanJoseDriver - 6/12/2018 6:49:33 PM

-2 Boost

Only salaried workers are being cut, not factory workers. It's good to trim the fat now and then, especially if you are growing quickly. They are still hiring so this looks more like a tactic to get rid of the lowest 10% while helping hit profitability this year.

Note Elon mentions the lack of profitability is a fair critique. Interesting he admitted that in the email.

Truthy - 6/13/2018 1:51:11 PM

+4 Boost

TomM, Elon says a lot of things that do not pan out. He has payments due on debt this year which would be tough to make even if he was not bleeding money. He keeps announcing projects that will require cash to make happen.
With the amount of cash on hand and monthly expenses, they will become insolvent before the end of this year.

supermoto - 6/12/2018 7:26:00 PM

+5 Boost

If these employees are truly not needed, why didn't Tesla let them go months earlier?

The real reason they're being let go is because the company is on the brink of insolvency.

SanJoseDriver - 6/15/2018 3:27:02 AM

+1 Boost

We'll see the financials from Q3 and Q4.