Tesla to layoff 9 percent of workforce

12 June, 2018, 22:26 | Author: Regina Silva
  • Markets Insider

As part of this effort, and the need to reduce costs and become profitable, we have made the hard decision to let go of approximately 9% of our colleagues across the company.

The layoffs are "almost entirely" in salaried positions and won't impact Tesla's efforts to increase Model 3 production, Musk said. Musk said the decision was made as the automaker works to become profitable.

Tesla started 2018 with about about 37,000 employees globally and has hired thousands of employees since then.

At the company's annual shareholder meeting earlier this month, Musk said he expected the Palo Alto, California, company to post a quarterly profit during the July-September period. That is a valid and fair criticism of Tesla's history to date.

The San Jose Mercury News, which first reported the firings, said the departures included "engineers, managers and factory workers". We are a small company in one of the toughest and most competitive industries on Earth, where just staying alive, let alone growing, is a form of victory (Tesla and Ford remain the only American vehicle companies who haven't gone bankrupt). Moreover, he said that this round of layoffs is necessary so that "we never have to do this again". But Musk has promised an acceleration of Model 3 manufacturing, which will allow the company to bring in a lot more revenue.

Uber and Lyft will roll out scooters in San Francisco
Now those companies are vying to be one of the five selected by the end of the month, when scooter rides are expected to resume. Aside from Uber and Lyft, scooter startups Bird, Lime , and Spin are also looking to get a piece of the action.


GOP Backs Canada After Trump Attack: 'A Reliable Ally, a Close Friend'
Trump's behavior at the G-7 summit was criticized by both Republican and Democratic lawmakers as being antagonistic of USA allies. The president also discussed the viral photo taken of German Chancellor Angela Merkel and others standing before him.


Wilder, Joshua agree to fight deal
We've got to speak to them about what date suits them. "I think Wembley is where Anthony Joshua wants it to take place". He insisted on having the fight there, even if the overall revenue for the event could be greater in Las Vegas.


Shares in the company rose as much as 7 percent on Tuesday, although they fell back to stand just 3 percent higher on the day after Musk's announcement.

Tesla employed more than 37,000 people at the end of previous year.

Consumer Edge Research Analyst James Albertine wrote in a note to investors that he views the moves "as a positive in helping Tesla track toward profitability later this year".

At the start of April, the company's shares had fallen by around 35 percent from a peak hit last September but signs that it is on course to meet an output target of 5,000 Model 3 cars per week have wiped out nearly all of this year's losses. It can easily top $50,000 with options.

Recommended:



Popular

Police operation over hostage situation in Paris
The attacker, who appeared to be brandishing a fake weapon, had doused his remaining two hostages in petrol, the source said. The man reportedly asked to speak to the Iranian embassy to deliver a message to the French government, Reuters reports .

Warning issued days before Florida woman attacked and killed by alligator
State wildlife searchers located the body of a woman believed to have been killed during an alligator attack in South Florida. At the time of the accident, Matsuki's husband was out of town and was trying to fly back home after hearing the news.

Crawford scores TKO over Horn, wins WBO welterweight title
He entered the ring, dominated and walked away with a victory and a championship belt wrapped around his waist. Horn already has 2cm in height on Crawford and is expecting to be around 70kg by the time the bout begins.

Real Madrid announce Spain coach Lopetegui as Zidane replacement
Guillem Balague says Julen Lopetegui's appointment as Real Madrid manager came as a surprise, but insists fans will be happy. He'll now become the manager of a club for which he made one senior appearance and has worked as a B team coach in the past.

Fortnite Is All But Confirmed For The Nintendo Switch, Game Icon Revealed
The new Super Smash Bros . for Switch is definitely going to show up during Nintendo E3 2018 pre-recorded briefing on June 12. This is great news since this will make it far easier to play all of your Switch games using these controllers.

E3 2018: GameCube Controllers Work In Super Smash Bros. Ultimate For Switch
Nintendo says that the show will focus on Switch releases for 2018, but we might see some 2019 titles and 3DS games as well. Support for Gamecube controllers and all (approximately) fifty gazillion existing Amiibo was confirmed, as well.

Union Minister Declares That Nipah Virus Has Been Contained
Mr Choubey is in the Kolkata for official meetings with several health institutions, besides state ministers. Choubey said that no fresh cases of the strain had been reported and that it was safe to visit the state.

Trump says Canada PM Justin Trudeau comments will cost Canada 'a lot'
And what did Trudeau do as soon as the plane took off from Canadian airspace? Some of Trump's aides also lashed out at the Canadian prime minister.

Indian billionaire jeweller seeks asylum in Britain
It recently announced a $32-billion recapitalisation plan to help them clean up their books ahead of the general election in 2019. India's government is trying to reduce the crippling debts of the country's embattled state banks, including PNB.

Trump's vow to end military drills with South Korea stuns a region
The Pentagon has said the exercises are essential to alliance-building and military readiness. President Trump was from China.