9% Of Tesla's Workforce Is Being Cut As It Restructures In Profitability Bid
With Tesla burning through cash at astonishing rate, it has to do something to avoid running dry before the year is up. And do something it will: several weeks after reporting a colossal $710 million loss in the first quarter of 2018, it’s been announced that the Californian electric car maker will slash nine per cent of its workforce.
On Twitter, CEO Elon Musk released the email sent out to employees. The message dubbed the move a “comprehensive organizational restructuring”. Musk added: “Tesla’s rapid growth has led to the duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today”. The move will affect nearly 4000 employees.
The email thanks departing employees for their services, and promising that Tesla will “providing significant salary and stock versting” to “minimise the impact.”
Production staff will be unaffected by the cuts, meaning the current Model 3 production targets remain unaltered, Musk said. He also noted that while profit isn’t the driving force of the company, “Tesla’s aim to accelerate the world’s transition to sustainable, clean energy” won’t be possible unless it can “demonstrate that we can be sustainably profitable.”
Growing up on a diet of World Rally Championship highlights and lengthy Gran Turismo 2 sessions, a life in cars was as good as inevitable for Matt.
Comments
“Given that Tesla has never made an annual profit for in the almost 15 years since we have existed”
Waow I wonder why?
To be fair, Lotus never made a profit from the early 1970s until year-2016, and even then they lost $14.5 million after taxes. It’s not impossible to survive that way.
TeslaRoadster
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Well, s**t!
If Tesla does make a profit, I would (not) be impressed.
So far on the recipe for Tesla is f*cked we have…
√-Stopped production of two cars in order to make a cheaper one…looks like they can’t afford to make 3 models unlike their rivals.
√-Continous problems with workers and improcedent fires
√-expensive car with Chinese quality.
√-Firing workers in order to save up costs
√-calling out periodists for saying the truth.
√-People cancelling orders for the “cheap” car since they noticed its a scam
√-and ofc saying that they can survive by making two extra cars they aren’t likely to build before running out of money.
And the fanbois of Musk say Tesla is not screwed…guess those live on a dream
I mean can you even justify ‘chinese’ quality anymore? The Model 3 is built worse than some of the new electric cars China has been developing and putting into production at an astonishing rate
the end of Tesla is near…
Tesla has turned into that company that made the coolest cooler
The idea seems good
People like the ideas
The go to make said idea
Oops we have no money
Funny this is what CT writes on, and nothing about how their stocks are up 40% and that they are on track to meeting production goals
If you go 10 steps backward and one step forward, nobody cares about the one step in thr right direction, because you’ve already embarassed yourself on the way to the finish line.
Idk about production goals, because they havent ever seemed to hit them but no one on this app really cares about tesla stocks, its pretty obvious the company isnt in good shape
It’s funny that we criticize Tesla for all of this yet…
—How many of our favourite automakers have had to be balled out by the government
—How many of these automakers have shutdown factories effectively firing tens of thousands of employees
—How many of these automakers have had spotless perfect start ups
How many have done all this all while doing something innovative, and managing three different companies?