In a recent memo sent out by Tesla CEO Elon Musk, it was revealed that approximately 10% of the company’s employees would be impacted by a restructuring effort. The memo, which was obtained by various news outlets, outlined the need for Tesla to become profitable in order to achieve its long-term goals.
The memo stated that the restructuring would primarily affect salaried employees and not production workers. Musk emphasized that the decision was a difficult but necessary one in order to streamline operations and reduce costs. He also mentioned that the affected employees would be given a severance package and assistance in finding new employment.
The announcement comes at a time when Tesla is facing increased pressure to meet production targets for its Model 3 electric car. The company has been struggling with production delays and has been burning through cash at a rapid pace. Musk has been vocal about the need to cut costs and improve efficiency in order to turn a profit.
Reaction to the memo has been mixed, with some employees expressing shock and disappointment at the news. Others have expressed understanding of the need for restructuring in order to ensure the long-term viability of the company. Investors, on the other hand, have largely reacted positively to the announcement, with Tesla’s stock price seeing a slight increase following the news.
Overall, the memo from Elon Musk has shed light on the challenges facing Tesla as it seeks to become a profitable company. While the decision to lay off employees is never an easy one, it may be a necessary step in order to secure Tesla’s future in the competitive electric car market. Only time will tell if this restructuring effort will be successful in achieving the company’s goals.