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Tesla Is Laying Off 9 Percent Of Its Workforce

Tesla is laying off approximately 9 percent of its staff across the company, CEO Elon Musk said Tuesday in a staff-wide email, which he characterized as “an effort to reduce costs and become profitable.”

In the email, Musk said the cuts were “almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach 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,” he wrote. “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.

But his email says Tesla’s growth has resulted in “some duplication of job roles and some job functions that, while they made sense in the past, are difficult to justify today.”

For those who’re terminated, Tesla is planning to provide salary and stock vesting that’s proportionate to the employee’s length of service. Musk said the company won’t renew a residential sales agreement deal with Home Depot, which the company inked as recently as February.

The deal gave Tesla a foot in the door of several hundred Home Depot locations, where Tesla employees could demonstrate its solar panels and Powerwall battery system, Bloomberg reported.

Musk said the decision not to continue with Home Depot is so Tesla can focus on “selling solar power in Tesla stores and online.” Employees at Home depot locations will be offered opportunities to work at retail locations, he said. 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.

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.

In addition to this company-wide restructuring, we’ve decided not to renew our residential sales agreement with Home Depot in order to focus our efforts on selling solar power in Tesla stores and online. The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations. In order to minimize the impact, Tesla is providing significant salary and stock vesting (proportionate to length of service) to those we are letting go. We are a small company in one of the toughest and most competitive industries on Earth, where just staying alive, let alone growing, is a form of victory (Tesla and Ford remain the only American car companies who haven’t gone bankrupt). Yet, despite our tiny size, Tesla has already played a major role in moving the auto industry towards sustainable electric transport and moving the energy industry towards sustainable power generation and storage.

 

Source:

https://jalopnik.com/tesla-is-laying-off-9-percent-of-its-workforce-1826768633

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