Sunday, 19 August, 2018

Layoffs hit Tesla as company cuts 9% of its workforce in restructuring

Musk to fire 9% of staff in ‘difficult reorganization’ of perpetually unprofitable Tesla Daniel Becerril
Ginger Lawrence | 13 June, 2018, 02:30

Cuts will not affect factory workers and "production associates" crucial to manufacturing the Model 3 and Tesla's hope of turning an annual profit for the first time in 2018. He argued that cost cutting was necessary to turn Tesla into a sustainably profitable company.

Musk acknowledged the job cuts in a tweet today, shortly after news leaked to the media.

Tesla has also pushed back against accusations of poor worker safety and discrimination at company facilities, and headline-grabbing wrecks and investigations that have raised questions about the company's semi autonomous technology. Through the reorganization, Tesla could shed around 4,100 jobs.

"Nine percent of the workforce is a pretty good-sized number, but as they've been ramping up for the Model 3, as well as maintaining sales of the Model S and Model X, it is expected that payroll may be bloated", Rebecca Lindland, executive analyst for Kelley Blue Book, said in an emailed statement.

Musk said most Tesla employees who had worked at the company's Home Depot displays will be allowed to work at Tesla's stores.

The success of Tesla's lower-priced electric vehicle is critical to the success of the company overall.

The company, based in Palo Alto, Calif., said the move was part of its organizational restructuring announced by CEO Elon Musk last month.

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The FDA said it's working with the CDC to determine if the recalled products went to additional stores or states. Caito's website says the Indianapolis Service Center and Fresh Cut facility is located at 3120 N.

Tesla's stock plummeted as a result.

Tesla told CBC News that it had over 42,000 employees around the world.

Electric auto maker Tesla Inc.is laying off about 3,600 white-collar workers as it slashes costs in an effort to become profitable.

Musk's statement addressed the fact that Tesla "has never made a profit in the nearly 15 years" since the company was founded, but highlighted that, along with Ford, it is the only USA auto company to never have been declared bankrupt. Year-to-date, Tesla's headcount is up roughly 15%.

This week, we are informing those whose roles are impacted by this action. As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission. Instead, it'll sell solar power in its own stores and online. Home Depot has 2,200 locations in the U.S. "I'm deeply grateful for your many contributions to our mission".

"It is very hard to say goodbye", Musk said in the letter.

Affected staff will be informed this week of their job losses, with Musk promising they would receive "significant salary and stock vesting" linked to their length of service.