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Tesla is cutting nine percent of its workforce amid restructuring

By Shawn Knight
Jun 12, 2018
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  1. Tesla CEO Elon Musk on Tuesday published an internal e-mail recently sent to staff members in which he shares details regarding the company’s reorganization efforts.

    In it, Musk reveals that Tesla is cutting nine percent of its global workforce. The cuts, which focus almost exclusively on salaried employees, do not include any production associates and thus will not affect the company’s Model 3 production targets over the coming months.

    Tesla has grown and evolved rapidly over the past several years, Musk said, which has resulted in the duplication of some roles and job functions. While they may have made sense in the past, they’re difficult to justify today, he added.

    The criticality of each position was evaluated to determine if certain jobs could be done more efficiently and productively, Musk said, adding that Tesla also assessed the specific skills and abilities of each individual within the company. Those who are being let go are being informed of the change this week, we’re told, and will be offered salary and stock options based on how long they were with the company.

    The executive noted that Tesla has never made an annual profit in its nearly 15-year history and that profit is not what motivates them. Their goal, he continued, is to accelerate the world’s transition to sustainable, clean energy, but it’s a mission they will never achieve unless Tesla eventually demonstrates it can turn a profit.

    “That is a valid and fair criticism of Tesla’s history to date,” Musk said.

    Permalink to story.

     
  2. Lounds

    Lounds TS Booster Posts: 99   +53

    VW has one of the biggest staff employment for the car industry and is one of the most profitable (minus all the lawsuits in the US). So if they're cutting things must be bad. Maybe they'll be acquisitioned in the future?
     
  3. senketsu

    senketsu TS Guru Posts: 709   +479

    Almost 15 years and no profit. People waiting for cars for years? Tesla must be an investor and public funds black hole. I don't understand how they keep going.
    That pic of the burned out Tesla that looked like it came from the Gulf war, Iraq to Kuwait 'Highway of Death' sure didn't help them either.
     
  4. mbrowne5061

    mbrowne5061 TS Evangelist Posts: 986   +508

    Its not the size of the company, but whether it can justify its size. Also, since Telsa released a lot of their most ground breaking patents into the public domain (in an attempt to influence EV standards; it worked btw), there isn't a ton of reason to acquire them.
     

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