Tesla can be Laying Off 9% Of Its Employees

Tesla can be laying off 9% of its total staff across the company. The layoffs are limited largely to salaried employees, in addition to also won’t impact production rates of the Tesla type 3, the company said.

In an email to staff on Tuesday, Tesla CEO Elon Musk said the cuts were driven by “the need to reduce costs in addition to also become profitable.” inside email, Musk acknowledged which “Tesla has never made an annual profit inside almost 15 years since we have existed.”

“Tesla has grown in addition to also evolved rapidly over the past several years, which has resulted in some duplication of roles in addition to also some job functions which, while they made sense inside past, are difficult to justify today,” Musk wrote.

Decisions of which employees to let go were determined “by evaluating the criticality of each position, whether certain jobs could be done more efficiently in addition to also productively, in addition to also by assessing the specific skills in addition to also abilities of each individual inside company.” In his email, Musk also noted which the company was ending a sales partnership with Home Depot, where Tesla placed salespeople at retail locations of the home improvement store to sell its solar products.

One Telsa employee who spoke with BuzzFeed News under the condition of anonymity said which last Friday, company leaders told home energy unit staff of an all-hands meeting on Tuesday, in addition to also told them to block off a four-hour period starting at 9 a.m. PT. On Monday, some sales employees were also told to complete an online test about Tesla vehicles before midnight, though which was unclear why at the time.

The employee, who works at a Home Depot location, told BuzzFeed News the four-hour meeting was reduced to a nine-minute conference call to notify employees of the expected workforce cuts. During the call, Home Depot-based workers were told which some who passed the vehicles sales test will move to Tesla automobile dealerships in addition to also which they would likely find out on Thursday if they had made the cut.

Still, Tuesday’s call left more questions than answers for the employee, who said Musk’s statements “don’t definitely add up.” In his email, the billionaire chief executive noted which “the majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations.”

“Elon said which which would likely be 9% of mostly salaried people, nevertheless the logic of which doesn’t make sense. There are hundreds of [non-salaried sales people] in Home Depots. If Home Depot can be shutting down, I don’t know how many possibly could be absorbed into Tesla stores,” the employee told BuzzFeed News.

Tesla did not immediately respond to questions on how which plans to handle transitions of Home Depot-based employees.

Tesla previously let go a large number of employees in October 2017, which the company said at the time were related to performance issues.

Some of those employees have accused the company of wrongfully terminating them because of their involvement in an ongoing labor organizing campaign at Tesla’s Fremont, California, car factory. Tesla can be currently facing those in addition to also some other charges of unfair labor practices in a trial in front of the National Labor Relations Board.

coming from: Elon Musk
To: Everybody
Subject: Reorg Update

As described previously, we are conducting a comprehensive organizational restructuring across our whole company. Tesla has grown in addition to also evolved rapidly over the past several years, which has resulted in some duplication of roles in addition to also some job functions which, while they made sense inside past, are difficult to justify today.

As part of which effort, in addition to also the need to reduce costs in addition to also become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company. These cuts were almost entirely made coming from our salaried population in addition to also no production associates were included, so which will not affect our ability to reach type 3 production targets inside coming months.

Given which Tesla has never made an annual profit inside almost 15 years since we have existed, profit can be obviously not what motivates us. What drives us can be our mission to accelerate the entire world’s transition to sustainable, clean energy, nevertheless we will never achieve which mission unless we eventually demonstrate which we can be sustainably profitable. which can be a valid in addition to also fair criticism of Tesla’s history to date.

which week, we are informing those whose roles are impacted by which action. We made these decisions by evaluating the criticality of each position, whether certain jobs could be done more efficiently in addition to also productively, in addition to also by assessing the specific skills in addition to also abilities of each individual inside company. As you know, we are also continuing to flatten our management structure to help us communicate better, eliminate bureaucracy in addition to also move faster.

In addition to which 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 in addition to also online. The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations.

I would likely like to thank everyone who can be departing Tesla for their hard work over time. I’m deeply grateful for your many contributions to our mission. which can be very difficult to say goodbye. In order to minimize the impact, Tesla can be providing significant salary in addition to also stock vesting (proportionate to length of service) to those we are letting go.

To be clear, Tesla will still continue to hire outstanding talent in critical roles as we move forward in addition to also there can be still a significant need for additional production personnel. I also want to emphasize which we are generating which hard decision currently generating sure which we never have to do which again.

To those who are departing, thank you for everything you’ve done for Tesla in addition to also we wish you well in your future opportunities. To those remaining, I would likely like to thank you in advance for the difficult job which remains ahead. We are a smaller company in one of the toughest in addition to also most competitive industries on Earth, where just staying alive, let alone growing, can be a form of victory (Tesla in addition to also 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 in addition to also moving the energy industry towards sustainable power generation in addition to also storage. We must continue to drive which forward for the Great of the entire world.

Thanks,

Elon

Caroline O’Donovan can be a senior technology reporter for BuzzFeed News in addition to also can be based in San Francisco.

Contact Caroline O’Donovan at caroline.odonovan@buzzfeed.com.

Ryan Mac can be a senior technology reporter for BuzzFeed News in addition to also can be based in San Francisco. He reports on the intersection of money, technology in addition to also power.

Contact Ryan Mac at ryan.mac@buzzfeed.com.

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