Elon Musk says Tesla will cut 9% of its workforce

Tesla is cutting 9% of jobs Elon Musk says layoffs won't hurt Model 3 production

The firm has missed a series of its own production targets for the large volume Model 3 in recent months, citing production issues at its factory.

Elon Musk is cutting 9 per cent of the workforce at Tesla Inc., a turnabout that underscores the mounting pressure he is under to show the electric-car maker can one day turn a profit.

Musk said jobs would be lost from Tesla's "salaried population", but promised "no production associates" will be let go.

Musk goes on to acknowledge that while profitability has never been the electric automaker's strong suit, the company can not go on ignoring the inefficiencies in its workforce if it hopes to achieve its environmental and social goals.

"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", the billionaire entrepreneur wrote in the email.

It's not the first time Tesla has laid off workers. Tesla (TSLA) is still hiring for key positions and will increase its production staff. Tesla has never been profitable in its 15-year existence.

Trump and Kim Jong-Un walk around Singapore summit venue
Trump's North Korean counterpart had also attended a meeting with PM Lee at the Istana yesterday for a half-hour session. Trump has dangled the prospect of economic investment in the North as a sweetener for giving up its nuclear weapons.

Musk called the job cuts, which will affect about 9% of the company's more than 40,000 employees, "difficult, but necessary" in a tweet that contained the email he had sent to employees announcing the layoffs.

Tesla has also pushed back against accusations of poor worker safety and discrimination at company facilities, and headline-grabbing wrecks and investigations that have raised questions about the company's semi autonomous technology.

Tesla is ending its partnership with Home Depot and will remove its branded kiosks from as many as 800 of the home improvement chain's USA stores by the end of the year. Wait times for the Model 3 ballooned at the company struggled through "production hell" past year. Employees working at Home Depot stores will have the option of moving to Tesla locations.

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

"It is very hard to say goodbye", Musk said in the letter.

What do you think the future holds for Tesla?

Related News:

  • White House adviser apologizes for slamming Justin Trudeau

    White House adviser apologizes for slamming Justin Trudeau

    He was asked why he was jeopardizing relations with long-standing allies like Canada while welcoming a historical USA enemy with open arms as a friend.
    Democratic House race in Virginia highlights primary voting in five states

    Democratic House race in Virginia highlights primary voting in five states

    At the time, Brat was a little-known economics professor at Randolph-Macon College, a small liberal arts school north of Richmond. Sanford is one of several Republican candidates in 2018 who have faced criticism from the right for speaking out against Trump.
    Stoke City sign Super Eagles midfielder, Etebo

    Stoke City sign Super Eagles midfielder, Etebo

    The Super Eagle joined Feirense from Warri Wolves in 2016 and made 45 league appearances with seven goals to his name. Rowett added: "We're really excited to have got the deal over the line for Etebo".
  • Judge approves AT&T-Time Warner merger opposed by Trump

    Judge approves AT&T-Time Warner merger opposed by Trump

    In after-market trading following the ruling , shares of Time Warner rose almost 5 percent and AT&T shares fell 1.6 percent. And in order to stay competitive, AT&T's CEO Randall Stephenson said during the trial that it needed a big deal to survive.
    Spider-Man PS4 Hands-On Impressions at E3 2018

    Spider-Man PS4 Hands-On Impressions at E3 2018

    Due to its fantastic gameplay and unbelievable mechanics, it seems the game will provide us with many thrills and excitement. An achingly lovely trailer was debuted on the Sony stage last night, showing off the new title set in feudal Japan.
    Canadian breeders revel in Justify’s Triple Crown

    Canadian breeders revel in Justify’s Triple Crown

    And Justify left no doubt about its right to history, Justify racing from the first post position and leading for the entire race. Justify has won the Belmont Stakes in NY to become the 13th horse to claim United States thoroughbred racing's Triple Crown.
  • The Division 2 Will Feature 8 People Squads for Raids and More

    The Division 2 Will Feature 8 People Squads for Raids and More

    Moreover, up to eight players will be able to tackle the new game's raids, up from the original's Incursion player cap of four. Ubisoft debuted a brand new cinematic trailer for The Division 2 during its E3 2018 press conference .
    Trump not inviting NBA champions to White House

    Trump not inviting NBA champions to White House

    Championship players have in recent years snubbed both Trump and President Barack Obama by declining White House invitations. But the determination comes as top White House officials continue to insist publicly that Mr.
    Japan: Bullet train knife attack kills one

    Japan: Bullet train knife attack kills one

    The incident took place on a bullet train travelling west in the south of Tokyo, which was carrying 880 passengers. According to the Kanagawa prefectural police and other sources, three passengers on the train were attacked.
  • Domino's introduces 'Paving for Pizza' infrastructure effort

    Domino's introduces 'Paving for Pizza' infrastructure effort

    Domino's says it's "is saving pizza, one pothole at a time", with an effort aimed at fixing potholes nominated by customers. So far the company has partnered with four towns: Bartonville, Texas; Milford, Del.; Athens, Ga.; and Burbank, Calif.
    Trump trade adviser: Harsh comments against Trudeau were a ‘mistake’

    Trump trade adviser: Harsh comments against Trudeau were a ‘mistake’

    The tariffs threaten an ever-shrinking sector in Canada that lost 53,000 jobs between 2001 and 2014. The U.S. exports more vehicles to Canada than anywhere else in the world.
    Robert De Niro Says 'F--k Trump' at 2018 Tony Awards

    Robert De Niro Says 'F--k Trump' at 2018 Tony Awards

    De Niro previously called Trump a "dog" and a "bulls*** artist" while threatening to physically assault him. De Niro's comments were unscripted and unexpected.


Most liked

Trump White House sows confusion on South Korean 'war games' pledge
The announcement took South Korean officials by surprise. "We pay for the majority of them", the president said . "It was discussed.

Nadal beats Thiem in straight sets for 11th French Open title — NewsAlert
Nadal simply had too much power and consistency for Argentina's fifth seed Juan Martin del Potro in the match that followed. The Argentine dropped the second set against the Croat but came back strong to take the match 7-6 (5), 5-7, 6-3, 7-5.

Officer rescues toddler running on busy highway
Anthony Mannino was on patrol when he saw the child running on the side of Route 59, so he used his patrol auto to block traffic. Anthony Mannino, a 24-year veteran of the Naperville, IL, Police Department, is being called a hero for his actions last month.

E3 2018: Tales of Vesperia Remaster Announced
TALES OF VESPERIA: Definitive Edition uses a specialised version of the TALES OF series' Linear Motion Battle System for combat. Tales of Vesperia: Definitive Edition is coming to Xbox One , PlayStation 4 , Nintendo Switch and PC according to Bandai Namco.

Fortnite Switch DOWNLOAD is not the Mobile version, uses Nintendo servers
At present, Epic says there are no plans to bring the original "Save the World" PvE component of " Fortnite " to Switch. The Battle Royale mode will be free to download for the Nintendo Switch from 6pm BST, as it is on other consoles.

China suggests sanctions relief for N Korea after United States summit
North Korea also serves as a valuable buffer state between China and USA forces in South Korea. However, Trump said North Korea sanctions would remain in place - for now.

Warriors' Kevin Durant can picture retiring at 35
Durant only scored 24 points during Game 2, but he really began to shine during Game 3, where he put up 43 points. I'd hate to say, "Man, I don't want to do this, do that" when I'm done playing".

Atletico Madrid attacker Griezmann: My future defined this week
Well, he couldn't say anything about Barca because of the release clause that reduces the fee they can sign him for doesn't come into effect until July 1.

Cristiano Ronaldo Reportedly 'Angry' at 'Derisory' Real Madrid Contract Offer
He admits that leaving the club was very hard for him, but he has enjoyed his last moments at Barcelona . We are becoming more independent of great players'.

Elon Musk's Boring Company puts first 1000 Flamethrowers in buyers' hands
The announcement of the flamethrower sales followed the company selling roughly 50,000 hats for $20 each, raising $1m in revenue. Some have criticised the sale of the Not-a-Flamethrower to the general public, viewing it as a major safety risk.

Star Fox is coming to Ubisoft’s space game Starlink
Ubisoft's store states that the Starter Edition for Nintendo Switch will retail for $74.99, but is not up for pre-order yet. Starlink: Battle for Atlas will be available on October 16th for PlayStation 4, Xbox One, and Nintendo Switch.

Egypt and Ethiopia fend off water wars over Nile mega-dam
The Nile River flows through Ethiopia, Sudan and Egypt, but the largest share of the river runs through Egyptian territory. Ethiopia, which has roughly same population size, says the dam is essential for its economic development.

Hurricane forecasters watching another wave of storms stirring in the Caribbean
The NHC alert said: "At 9am MDT (2pm GMT) the eye of Hurricane Bud was located near latitude 16.7 North, longitude 106.8 West. Hurricane Bud's probable path off Mexico's Pacific coast is displayed in this graphic from the National Weather Service .

Wendy's Shades IHOP Over Name Change to IHOb in Savage Tweet
A&W, Whataburger , Chili's and Denny's piled on with facetious name-changes and gibes about the new IHOB's burgers . More Money: McDonald's: You buy more from touch-screen kiosks than a person.

E3 2018: New Kingdom Hearts III Trailer Introduces Pirates of the Caribbean
Final Fantasy XIV and Monster Hunter: World are joining up to make two groups of nerds incredibly happy. Just Cause 4 is confirmed as coming to PC and PS4 on December 4 with a new gameplay trailer above.