Tesla to cut thousands of jobs in search for profit

Tesla to cut thousands of jobs in search for profit

Tesla to cut thousands of jobs in search for profit

US electric auto giant Tesla is laying off nine per cent of its workforce, the company announced on Tuesday.

On Tuesday, Musk tweeted that the company will cut 9 percent of its workforce as part of the restructuring and to "become profitable".

The layoffs are "almost entirely" in salaried positions and won't impact Tesla's efforts to increase Model 3 production, Musk said.

Musk says the company is motivated by turning a profit.

Tesla will lay off almost one in 10 of its workers but the cuts won't hamper its drive to meet production targets for the Model 3 sedan, according to company CEO Elon Musk.

The company would, he continued, "never achieve" its mission to "accelerate the transition to sustainable, clean energy" unless Tesla is able to "eventually demonstrate that we can be sustainably profitable". Year-to-date, Tesla's headcount is up roughly 15%.

New Tesla cars at a showroom in Manhattan in June. The company will also not renew its contract with U.S. hardware chain Home Depot, which now sells the company's solar panels and home energy systems, though "the majority" of Tesla staff now placed in Home Depot stores will move over to Tesla retail positions. That means about 3,379 employees are getting a pink slip.

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As of the time of this reporting, Tesla stock is up over 4%.

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.

Consumer Edge Research Analyst James Albertine wrote in a note to investors that he views the moves "as a positive in helping Tesla track toward profitability later this year".

As part of its reorganization, Tesla is ending its solar panel sales agreement with Home Depot (HD). The CEO wrote that those Tesla employees working in Home Depot locations would be offered the chance to work at its own stores.

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

To those who are departing, thank you for everything you've done for Tesla and we wish you well in your future opportunities.

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