Tesla lays off roughly nine percent of workforce

Tesla is cutting 9% of staff

Tesla would not say how much money the layoffs would save, but said no factory workers would be affected as the company continues to ramp up production of its lower-priced Model 3 compact auto.

"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, " Musk wrote in the email.

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

Tesla has been burning cash nearly continuously since it was founded 15 years ago.

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.

The San Jose Mercury News, which first reported the firings, said the departures included "engineers, managers and factory workers".

Seeing Tesla Improving Production Rate: Keybank

As many as 9% of Tesla's workforce will be let go. "What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable".

The company is making the move now so it never has to do it again, he wrote. The company said the firings involved non-manufacturing positions and were unrelated to production delays involving the Model 3.

Following the announcement, Electrek has now learned of a round of layoffs currently ongoing at Tesla, which could see as much as 9% of the workforce leave the company.

Musk's note also said that Tesla will end distribution of its solar power and home battery equipment at Home Depot and focus on direct sales instead.

Tesla employed more than 37,000 people at the end of previous year. Each time, after a few quarters of small profits, Tesla would ramp up production of another vehicle model-first the Model X, then the Model 3-and rack up more big losses, as this chart from Bloomberg shows.

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