Tesla Cuts 9% Of Workforce: Musk Shares Full "Reorg" Letter

Tesla is laying off around 9-percent of its workforce, according to insiders. Following a leak of the news, company CEO Elon Musk has confirmed the news and shared the full "reorg" letter sent to employees. In the letter, Musk states that a "comprehensive organizational restructuring" is underway but won't impact production workers.

Musk shared screenshots of the full company restructuring announcement letter on Twitter so that everyone could read it "unfiltered." In the letter, which is signed by Musk, Tesla employees are told that most of the "approximately 9%" of laid off workers were almost entirely composed of salaried positions.

As such, Musk states that the layoff won't impact the company's Model 3 production goals. Ultimately, the letter states, the "restructuring" is necessary in the pursuit of sustainable profitability. "Given that Tesla has never made an annual profit in almost 15 years...profit is obviously not what motivates us," Musk said in the letter.

The company evaluated the necessity of the various positions, looking at this "criticality" in determining whether they would remain. Tesla also evaluated each workers' "specific skills and abilities" as part of its restructuring effort.

In addition to laying off some workers, Musk revealed that Tesla is declining to renew its residential sales agreement with the hardware and home improvement store Home Depot, a move intended to "focus our efforts on selling solar power in Tesla stores and online." However, the Tesla employees currently working with Home Depot will have the option to move to Tesla's own retail stores.

SOURCE: Twitter