Tesla Inc is cutting about 9 percent of jobs across the company, billionaire Chief Executive Elon Musk said on Tuesday, as it seeks to reduce costs without endangering the critical ramp up of production of its Model 3 sedan.
The move is part of an organizational restructuring that Musk announced earlier in the year. Musk said the decision was made as the automaker works to become profitable.
Tesla has already started to notify employees, a company spokesman said.
"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", he wrote in an email to employees and posted on Twitter.
Musk told employees in May that the company was undergoing a "thorough reorganization" as it contends with production problems, senior staff departures and recent crashes involving its electric cars. For almost all of its history, Tesla has put up losses while investing heavily in technology, manufacturing plants and an extensive car-charging network.
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". The company let go of 400 to 700 workers last fall after completing annual performance reviews, and it laid off a small number of workers back in 2008.
Musk said the cutbacks would not affect the company's ability to reach Model 3 production targets in the coming months.
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.
It will instead "focus our efforts on selling solar power in Tesla stores and online", he said.
A sign is seen outside Tesla Motors' new showroom in Manhattan's Meatpacking District in New York City, U.S., December 14, 2017. Musk also has talked about a restructuring of its production line, after failing to meet Model 3 goals.
- Trump G7 tweets 'sobering and depressing': Merkel
- Ivanka Trump and Jared Kushner earned a stunning amount a year ago
- Iran warns N. Korea over possible Trump U-turn on Singapore deal
- Domino’s Pizza Repaves Potholes In Milford, Delaware
- GameCube Controllers For Nintendo Switch Leaked
- Liverpool Could Reportedly Sign Gelson Martins for Free Amid Sporting CP Exodus
- Key four areas mentioned in the US-North Korea signed document
- Amazon criticized over conditions at supplier's factory
- Rafael Nadal admits he thought he would have retired by now
- Athens, Skopje Reach Agreement on Constitutional Name of Macedonia