Tesla is planning to cut around 9% of its employees, or around 3,300 people, according to a company wide email sent by CEO Elon Musk. Tesla shares went down following the report but are up overall for the day.
Musk added that the layoffs are not expected to affect the automaker's Model 3 production schedule, and that criticism of Tesla's inability to turn a profit is "valid and fair."
As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company. These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months.— Excerpt from Musk's email