Musk announces 'difficult decision' to make Tesla job cuts
Tesla has revealed it plans to cut 9 per cent of its workforce as part of a company-wide restructuring.
The more than 3,000 layoffs at Elon Musk’s electric car maker have been announced as the company comes under increasing pressure to cut costs and become profitable.
Musk, who shared the email he sent to employees on Twitter, said the job cuts were a "difficult decision".
"Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today," he wrote in the email.
Difficult, but necessary Tesla reorg underway. My email to the company has already leaked to media. Here it is unfiltered: pic.twitter.com/4LToWoxScx— Elon Musk (@elonmusk) June 12, 2018
The billionaire entrepreneur said the cuts would primarily affect salaried employees and that no production staff were associated – meaning that it would not affect Tesla’s ability to reach its Model 3 production targets in the coming months.
"Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us," Musk added.
"What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable."
Tesla employed more than 37,000 people at the end of last year.