Job Cuts for Tesla: Lays off 9%

Tesla hasn’t produced nearly as many of its vaunted Model 3 affordable EVs as it expected, which has led to a quarter of those who preordered the vehicle to demand refunds. As early as this year’s first-quarter earnings call, Elon Musk told employees that a reorganization was coming — and it came today. Musk published an internal email on Twitter revealing that the automaker is cutting around nine percent of jobs across the company.

In the email, Musk stated that Tesla’s aggressive growth resulted in duplicated roles, and these layoffs will help the company reduce costs and become profitable. “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,” Musk wrote, forestalling concerns that the job cuts would affect the already-delayed EV from coming out. The company still expects its Model 3 gross margins to break even in Q2 and be positive in Q3 and Q4 of this year, Tesla told Engadget over email.

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