NEW YORK: Tesla has laid off about nine percent of its employees, Electrek first reported. This is part of the reorganization Musk talked about in May on the company’s quarterly earnings call. The layoffs reportedly started on Monday and will be made official at some point today.
Tesla, which also operates SolarCity, is only laying off salaried employees. Tesla isn’t letting go any production associates, as the company is trying to ramp up Model 3 production.
“We made these decisions by evaluating the criticality of each position, whether certain jobs could be done more efficiently and productively, and by assessing the specific skills and abilities of each individual in the company,” Tesla CEO Elon Musk wrote to employees in an email obtained by TechCrunch. “As you know, we are also continuing to flatten our management structure to help us communicate better, eliminate bureaucracy and move faster.”
When Tesla acquired SolarCity in 2016, its headcount increased to more than 30,000 employees. Toward the end of 2017, Tesla had around 37,000 employees.