Photo: cnbc.com
In a post on Twitter on Tuesday, Elon Musk confirmed Tesla is currently undergoing a reorganization process which would inevitably lead to layoffs.
The tweet posted by Musk is, in fact, the email he sent to company employees. Musk said he decided to make public the information following it being leaked to the media earlier in the day.
As per the details shared by Musk, Tesla is to fire 9 percent of the workforce across the company. At the end of 2017, Tesla employed over 37,000 people worldwide, meaning the decision could lead to over 3,000 people losing their jobs.
The billionaire says the cuts would not affect production workers, but only the “salaried population,” without specifying exactly what that means.
Probably for the first time in such an open manner, Musk confirmed the fact that since its inception 15 years ago, Tesla never made an annual profit. This, he goes on saying, is not a problem in itself, but the company needs to “demonstrate that we can be sustainably profitable” to help the world transition to clean energy.
The cuts would not impact the production of the Model 3, as no production staff is targeted. It might, however, impact Tesla employees working at Home Depot stores.
As part of the reorganization, Tesla would stop selling solar power technology at the retailer's location. Instead, the products would be sold in Tesla stores and online.
Tesla is currently in the process of notifying those affected by the decision. Musk concluded his email by saying those who would leave would receive “significant salary and stock vesting (proportionate to the length of service).”
Somewhat contradicting the need to restructure by letting people go, Musk concluded that Tesla would continue to hire “talent in critical roles” and it still needs additional production personnel.
Attached below is the tweet used by Elon Musk to make public the biggest shakeup in the company’s history.
As per the details shared by Musk, Tesla is to fire 9 percent of the workforce across the company. At the end of 2017, Tesla employed over 37,000 people worldwide, meaning the decision could lead to over 3,000 people losing their jobs.
The billionaire says the cuts would not affect production workers, but only the “salaried population,” without specifying exactly what that means.
Probably for the first time in such an open manner, Musk confirmed the fact that since its inception 15 years ago, Tesla never made an annual profit. This, he goes on saying, is not a problem in itself, but the company needs to “demonstrate that we can be sustainably profitable” to help the world transition to clean energy.
The cuts would not impact the production of the Model 3, as no production staff is targeted. It might, however, impact Tesla employees working at Home Depot stores.
As part of the reorganization, Tesla would stop selling solar power technology at the retailer's location. Instead, the products would be sold in Tesla stores and online.
Tesla is currently in the process of notifying those affected by the decision. Musk concluded his email by saying those who would leave would receive “significant salary and stock vesting (proportionate to the length of service).”
Somewhat contradicting the need to restructure by letting people go, Musk concluded that Tesla would continue to hire “talent in critical roles” and it still needs additional production personnel.
Attached below is the tweet used by Elon Musk to make public the biggest shakeup in the company’s history.
Difficult, but necessary Tesla reorg underway. My email to the company has already leaked to media. Here it is unfiltered: pic.twitter.com/4LToWoxScx
— Elon Musk (@elonmusk) 12 iunie 2018
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