Recently, Tesla’s CEO, Elon Musk, confirmed that the company’s customer referral program was ending. We aren’t done digesting that news and now, according to a new report, some serious cost cutting appears to be underway at Tesla. The report claims that Musk has announced that the company is firing 7 percent of its entire workforce in an email sent to all employees of the company.
There’s no doubt a lot of people who work at the company are going to get affected by this move. The company hires around 45,000 people so trimming this size and magnitude is going to leave around 3,000 employees looking for a new job.
Part of the email reads,
Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months. Tesla is only going to retain the most critical temps and contractors.
With this move, it is yet another indication that the company is seriously tightening its belt in the pursuit of those elusive profits. It’s evident that these are changes which need to be made if Tesla wants sustainable profitability.
Although the company did make a small profit in the final two quarters of 2018, but investors are still hoping to see if they can be transformed into long-term profits.