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.”