Monday, 20 August 2018
Latest news
Main » Tesla is laying off about 3,600 workers

Tesla is laying off about 3,600 workers

12 June 2018

Shares of electric automaker Tesla rose during Tuesday's trading session after one Wall Street firm raised its Model 3 production estimates by 50%.

In May, Musk announced a "thorough reorganization" in a memo to employees.

Musk said that Tesla would provide laid off workers with "significant salary and stock vesting". Instead, he said that the cuts were made to job functions that, "are hard to justify today".

Last month Mr Musk said the company was planning a wide-ranging reorganisation that would flatten its management structure.

"Given that Tesla has never made an annual profit in the nearly 15 years since we have existed, profit is obviously not what motivates us", Tesla said.

Domino's Pizza offering to fill in potholes nominated by customers
The company helped fill five potholes in Burbank, eight in Bartonville, 40 in Milford, and 150 square yards of roads in Athens. Domino's Pizza is underscoring the importance of its carryout business by working to make roads easier to drive on.

"These cuts were entirely from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months".

Tesla started 2018 with about about 37,000 employees globally and has hired thousands of employees since then. For almost all of its history, Tesla has put up losses while investing heavily in technology, manufacturing plants and an extensive car-charging network. At the time, Tesla had 33,000 employees, suggesting that Tesla's headcount is still on an upward trajectory overall.

Musk wrote in the email that the company will never achieve its mission to help move the world to cleaner energy "unless we eventually demonstrate that we can be sustainably profitable".

Tesla also said it was not renewing its residential sales agreement with retailer Home Depot in order to focus on selling solar power in Tesla stores and online. Each time, after a few quarters of small profits, Tesla would ramp up production of another auto model-first the Model X, then the Model 3-and rack up more big losses, as this chart from Bloomberg shows. We are a small company in one of the toughest and most competitive industries on Earth, where just staying alive, let alone growing, is a form of victory (Tesla and Ford remain the only American vehicle companies who haven't gone bankrupt).

Tesla is laying off about 3,600 workers