Tesla layoffs: Company cuts 9% of its staff

Tesla lays off roughly nine percent of workforce		
	Megan Rose Dickey

   	7 hours

"We are conducting a comprehensive organizational restructuring across our whole company", CEO Elon Musk said in a company-wide email that he later shared on Twitter.

Tesla announced on Tuesday that it would cut 9pc of jobs across the company.

In the note, which he tweeted out after it was leaked to media outlets, Musk said that almost all of the cuts would be salaried positions, and that the production staff is largely unaffected. Cuts will not affect factory workers and "production associates" crucial to manufacturing the Model 3 and Tesla's hope of turning an annual profit for the first time in 2018.

The move follows Tesla starting a brutal review of contractors and firing everyone that is not vouched for by an employee last month.

Up almost 7% earlier on Tuesday, shares of the company trimmed gains to stand 3.5% higher at $344 by early afternoon.

He wrote that reaching Musk's Model 3 production goal of 5,000 vehicles per week by the end of June is still the primary driver of profitability.

Last week, Musk overcame an attempt to strip him of his role as chairman of Tesla's board, a plan introduced by a company shareholder who raised doubts about Musk's ability to manage multiple companies simultaneously.

"Profit is obviously not what motivates us", Musk wrote. Tesla has said it has begun small-scale production of the roofing panels in Buffalo, but has never detailed the scope of its activity or said how many workers it has on site. Year-to-date, Tesla's headcount is up roughly 15%.

He also adds that Tesla will not renew its residential sales agreement with Home Depot.

"The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations", it said. "I'm deeply grateful for your many contributions to our mission". He thanked departing employees for their hard work and said Tesla is providing "significant salary and stock vesting" to those being let go, based on their length of service. Tesla (TSLA) is still hiring for key positions and will increase its production staff. Musk said Tesla is making the move now so it never has to do it again.

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