Tesla Cuts 9% of Workforce to Improve Profit
CBJ — Electric car maker Tesla is laying off about 3,600 workers mainly from its salaried ranks as it slashes costs in an effort to deliver on CEO Elon Musk’s promise to turn a profit in the second half of the year.
The cuts amount to about 9% of the company’s entire workforce of about 40,000.
It is unclear how much money will be saved from the cuts. No factory workers are being laid off because CEO Elon Musk has been under constant pressure to ramp up production of the Model 3 compact car. The Model 3 starts at $35,000, but lower-priced configurations are not available yet. It can easily top $50,000 with options.
Tesla has not made an annual profit in its 15 years of doing business, and it has posted only two quarterly net profits.
It’s not the first time Tesla has laid off workers. The company let go of 400 to 700 workers last fall after completing annual performance reviews, and it laid off a small number of workers back in 2008.