US electric car maker, Tesla has laid off about 9 percent of its employees as part of a “company-wide restructuring,” according to an email sent to staff by CEO Elon Musk on Wednesday.
The cuts, which account for more than 3,000 jobs, will not affect the company’s continued effort to ramp up production of the Model 3 sedan, Musk said.
“We made these decisions by evaluating the criticality of each position, whether certain jobs could be done more efficiently and productively, and by assessing the specific skills and abilities of each individual in the company,” Musk wrote.
“In order to minimize the impact, Tesla is providing significant salary and stock investing (proportionate to the length of service) to those we are letting go.”
“Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us,” he wrote today.
“What drives us is our mission to accelerate the worlds transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable. That is a valid and fair criticism of Tesla’s history to date.”