Tesla to lay off 9% of workers as part of restructuring plan
U.S. electric car giant Tesla is laying off nine per cent of its global workforce.
“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 nine per cent of our colleagues across the company,” Musk said in an email to employees.
“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 posts worst ever quarterly loss as cash burn accelerates.
In May, Tesla posted its biggest-ever quarterly loss when it announced first quarter results and then it lost $2 billion in market capitalization.
Musk also said his company will not renew its residential sales agreement with retailer Home Depot in order to focus on selling solar power in Tesla stores and online.
“The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations,” Musk said.