Tesla to lay off 9 percent of its workers

[DonViejo]

Source: The Washington Post

By Danielle Paquette and Peter Holley
June 12 at 3:27 PM

Tesla announced Tuesday it planned to lay off up to nine percent of its workforce, a move that could eliminate thousands of its roughly 40,000 employees.

In a company-wide email, chief executive Elon Musk described the decision as “restructuring” and said it would affect only salaried employees — not the factory workers building its next fleet of Model 3 electric cars.

“Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today,” Musk wrote.

Link to tweet

The cuts come as the company aims to shrink costs and become profitable, Musk said.

Read more: https://www.washingtonpost.com/news/wonk/wp/2018/06/12/tesla-to-lay-off-9-percent-of-its-workers/

[AllaN01Bear]

1. wonder where overseas he is going to send the jobs?

[lagomorph777]

2. Maybe into space.

I think that's sorta what actually happened.

[Massacure]

3. Indeed

Just for grins, I decided to pull up SEC filings for Ford and Tesla. Tesla spends about 20.1% of their gross revenue on "Selling, general and administrative". Ford spends about 7.3% on "Selling, administrative, and other expenses".

Spending three times as much as ford on administrative cost may have been acceptable when they were selling $100,000 cars, but they cannot get away with that at the $30,000 price point.