Tesla completes restructuring and lays off 9 percent of employees

Tesla CEO Elon Musk informed employees in an email that the company is undergoing a reorganization that will cause about nine percent of employees to lose their jobs. That equates to about three thousand people.

Musk has the integral e-mail published on his Twitter account, after parts of it had already been leaked. In it he writes that the company has grown rapidly in recent years, which has resulted in doubling of some functions, while there are also functions that would no longer be justifiable. The layoffs will not affect any personnel involved in production. Musk seems to want to allay concerns that the reorganization will have negative consequences for the production of the Model 3, which is experiencing problems.

Musk adds that his company has never made a profit in a period of 15 years and that “making a profit is not the motivation of the company.” However, the clean energy transition, described by Musk as the company’s mission, would not be achievable without Tesla ultimately turning profitable.

In addition, Musk notes in his email that work is being done to flatten Tesla’s management structure and reduce bureaucracy. Additionally, Tesla is suspending an agreement with US home improvement retailer Home Depot, which it signed in February. Under the agreement, the stores sold Tesla solar panels and PowerWalls.