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Elon Musk Announces Drastic Workplace Cuts

Industry News / 19 Comments

In a bid to become profitable Tesla has had to severely trim down its workforce.

Any new development at Tesla tends to become a hotly debated topic moments after it is released. The recent announcement that it would be cutting its workforce down by a whopping 9% was no different and has led to the usual conspiracy theories and wild predictions about the company's future. We will stick to the information provided in the internal company email which Musk posted in its entirety on Twitter. In it he explains how the move was a necessary one as the rapid evolution of the company had resulted in the duplication of certain roles.

He went on to say that the cuts would almost all be from the salaried staff and not the production associates, implying that the tight Model 3 production targets should not be affected. He was candid too in his admission that while Tesla has never made an annual profit in 15 years, the need to become sustainably profitable was necessary to achieve its mission. This being the aim to help bring about the world's transition to sustainable clean energy use. Elon Musk thanked the departing employees and stated that those leaving would be receiving generous packages and proportionate stock options.

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He also reassured the remaining employees that this drastic downsizing was a one off thing and Tesla would still be hiring highly talented individuals for critical roles. The company-wide restructuring meant that their Home Depot solar-powered selling agreement would not be renewed. However these employees will be able to move over to Tesla retail locations. With the motor industry facing some tough times the move was practically inevitable, let's hope that it leads to a more sustainable and profitable future for Tesla.