Tesla CEO, Elon Musk has announced that Tesla is laying off nine percent of its work force – the company’s biggest layoff ever. According to Elon Musk, the cuts are needed, since Tesla is trying to reduce costs and become profitable.
Even though Tesla is laying off nine percent of its work force, none of its production associates will lose their jobs. Instead most of the cuts will be to its salaried work force, which is good news, since Tesla is still trying to ramp up Model 3 production.
“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,” Elon Musk stated. “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. That is a valid and fair criticism of Tesla’s history to date.”
Even with the sad news that some of its staff will be let go, Tesla will provide salary and vesting stock to its employees that are being cut.
Tesla has also decided to not renew a residential sales agreement with Home Depot and instead will focus on selling solar power in its own stores and online.