- 13Jun2018
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Tesla Cuts 9% Of Its Workforce
Electric car maker, Tesla is cutting several thousand jobs across the company as it seeks to reduce costs and become profitable without endangering the critical production ramp-up for its Model 3 sedan.
In an email he said had been sent to staff, billionaire Chief Executive Elon Musk said on Tuesday that the cuts were part of a simplification of Tesla’s management structure promised last month.
“As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company,” the email read.
“These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months.”
Tesla has been trying to hit a 5,000 per week production target of its Model 3 sedans after facing initial production hiccups. Last week, Musk said the carmaker should achieve its target by the end of June.
Since the beginning of the year, Tesla has added roughly 8,000 jobs and currently employs approximately 46,000 workers. Through this reorganization, it will reduce about 4,000 jobs.
Following news of the layoff, Tesla shares rose as much as 7% and were last up 3.6% at $344.18.
Source: Reuters
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- 13 Jun, 2018
- NEBA Financial Solutions
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