Tesla lays off roughly nine percent of workforce

Tesla Model S

The move is part of an organizational restructuring that Musk announced earlier in the year.

"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 hard to justify today", the message begins, in an apparent effort to claim that the cuts are not as the result of persistent problems at the company, including a massive debt pile, growing costs, significant production problems and nervous investors.

Tesla said it began notifying impacted workers on Tuesday and would continue to do so throughout the week.

Tesla has not made an annual profit in its 15 years of doing business, and it has posted only two quarterly net profits.

Musk told employees in May that the company was undergoing a "thorough reorganization" as it contends with production problems, senior staff departures and recent crashes involving its electric cars. That is a valid and fair criticism of Tesla's history to date.

It's not the first time Tesla has laid off workers.

As many as 9% of Tesla's workforce will be let go.

Police operation over hostage situation in Paris
A pregnant woman also managed to escape and was being treated for shock by ambulance services on the scene. An armed man has taken hostages at a building in a northern district of Paris .

Iran to North Korea: Don’t Trust ‘Deal-Breaker-in-Chief’ Trump
Kim as "little rocket man", and warned that the USA would "totally destroy" North Korea. Trump said he expected the denuclearisation process to start "very, very quickly".

North Korea summit can push nuclear disarmament process across globe
Trump said he's certain that his warlike rhetoric past year against North Korean leader Kim Jong-un convinced Mr. Associated Press writers Kim Tong-hyung in Seoul and Gillian Wong in Beijing contributed to this report.

The company is making the move now so it never has to do it again, he wrote.

In the email, he said the cuts are aimed at eliminating duplicate roles and he does not expect them to affect the firm's production ability.

It is worth noting that the email also comes following several weeks of press reports outlining the vehicle company's troubles and predicting exactly what has happened - the need to cut costs while keeping production moving as fast as possible.

In addition to this company-wide restructuring, we've decided not to renew our residential sales agreement with Home Depot in order to focus our efforts on selling solar power in Tesla stores and online.

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.

Up almost 7 percent earlier on Tuesday, shares of the company trimmed gains to stand 3.5 percent higher at $344 by early afternoon.

Related news:

Hot News

isis-killer-beheading-video-story-top Liverpool Could Reportedly Sign Gelson Martins for Free Amid Sporting CP Exodus
Jun 12, 2018 - 22:16
Last month 50 fans forced their way onto the training pitch and attacked players and staff with Bost picking up a head injury. Martins, who was the most influential player for Sporting Lisbon, scored 13 goals and provided 13 assists in 52 appearances.

isis-killer-beheading-video-story-top Paris incident: Armed man takes hostages
Jun 12, 2018 - 21:54
The hostages are being held in the internal courtyard of the building, which contains a mix of offices and residential apartments. Police would not immediately confirm whether the person holding the hostages was armed or describe the nature of his demands.

isis-killer-beheading-video-story-top Marvel’s Spider-Man E3 2018 Gameplay Showcases Rhino, Vulture, Scorpion and Electro
Jun 12, 2018 - 21:52
Unfortunately, Suker Punch hasn't even announced what year they will be releasing Ghost of Tsushima , let alone a specific date. This one will definitely get ever hack-and-slash fan hyped, because we are finally going to get an open-world samurai game.

isis-killer-beheading-video-story-top Toddler wandering dangerously close to highway rescued by quick-thinking officer
Jun 12, 2018 - 21:35
Mannino's observation while on patrol and quick reaction, placing his squad auto and himself between the child and traffic. According to a Naperville police spokesman, the boy ran out of his mother's home when she wasn't looking.

isis-killer-beheading-video-story-top Uber Wants To Enter Scooter Business In San Francisco
Jun 12, 2018 - 20:55
Lyft and Uber represent just two of the 12 firms that have applied for permits to operate motorised scooters in San Francisco. This forced San Francisco to ban the personalized transportation machines until it got its arms around regulations.

isis-killer-beheading-video-story-top Wake held for Brazil tennis great Maria Bueno
Jun 12, 2018 - 20:30
Born in Sao Paulo, Bueno started playing tennis at the age of 6 and entered her first tournament at 11. Her last major title came in 1968 when she won the doubles title at the U.S.

isis-killer-beheading-video-story-top U.S. watchdog finds violations at Foxconn factory making Amazon devices
Jun 12, 2018 - 20:26
The US tech giant admitted that its supplier factory in Hengyang breached laws that limit the number of agency workers employed. Still, wages are deducted as penalty for taking leave or "unexcused absences", and workers are subjected to verbal abuse .

isis-killer-beheading-video-story-top Fortnite for Switch outed again, this time by the eShop
Jun 12, 2018 - 20:12
We already know that Super Smash Bros . will be shown off heavily, but there's some mystery surrounding the rest of the line-up. The Nintendo Switch is only beginning to hit its stride as more and more third-party publishers decide to support the console.

isis-killer-beheading-video-story-top Watch the Nintendo Direct E3 2018 Live Stream!
Jun 12, 2018 - 20:06
Once the field is set, the game begins, and players can move their characters between both Switches like it was one large screen. Ultimate, but as the first installment on Nintendo's hand-held hybrid Super Mario Party has shown that a lot that's changed.

isis-killer-beheading-video-story-top Trudeau's criticism will cost Canada 'a lot of money'
Jun 12, 2018 - 19:31
Navarro continued, "That's what weak, dishonest Justin Trudeau did, and that comes right from Air Force One". Kudlow said Trump won't let people "take pot shots at him" and that Trudeau "should've known better".

isis-killer-beheading-video-story-top Domino's Pizza fixing potholes
Jun 12, 2018 - 18:34
Domino's Pizza says potholes are putting its pizzas at risk, so the company is helping smooth out roads for delivery drivers. The pizza chain has already done work in four cities to fix roads that directly affect their customers.

isis-killer-beheading-video-story-top E3 2018: 10 Best Things At Microsoft's Conference
Jun 12, 2018 - 18:28
The industry is headed in an exciting direction, and we see an opportunity to create awesome new game experiences of the future. If you've been constantly putting off an XBox One purchase, this could be the game to finally break you.

isis-killer-beheading-video-story-top Boxing World Goes Nuts After Wilder Accepts Joshua’s Offer
Jun 12, 2018 - 18:25
The American said: "The $50M offer for him to fight me next in the United States is still available". A fight between Joshua and Wilder would see all major heavyweight world titles on the line.

isis-killer-beheading-video-story-top Europe will implement counter measures against United States tariffs on steel and aluminium
Jun 12, 2018 - 18:00
She conceded in an interview on German public television Sunday that the meeting's outcome "wasn't a great thing". The EU also won't be "taken for a ride" in its trade conflict with the United States , she said.

isis-killer-beheading-video-story-top Sergej Milinkovic-Savic makes announcement over Lazio future
Jun 12, 2018 - 17:28
Il Messaggero beleive Madrid are willing to meet Lazio's asking price of £132million and also pay an extra £18million in bonuses. Manchester United is set to rival Real Madrid for Lazio midfielder Sergej Milinkovic-Savic, according to a report in Italy.