Tesla announced 9% layoffs, not involving production department staff

Tesla announced 9% layoffs, not involving production department staff

Sina Technology News Beijing time on the morning of June 13th, this Tuesday, Tesla told its employees that it will lay off 9%. Since the beginning of this year, Tesla has recruited about 8000 employees, and now the company has a total of 46 thousand employees, so this time it will cut about 4100 employees.

In the middle of May this year, Elon Musk, the chief executive of Tesla, said the company was "completely reorganizing" and flattening the company's management structure.

"It needs to be clear that Tesla needs to continue to recruit outstanding talents in the process of continuing development, and that it is necessary to recruit more production staff," Musk wrote in a letter to employees on Tuesday. What I want to emphasize is that we will not make such a decision after making this difficult decision now. "

Mr. musk reiterated this view in a Twitter campaign released on Tuesday. He said the layoffs were "tough but necessary."

Ephraim Levi (Efraim Levy), an analyst at CFRA, believes that Tesla's downsizing plan indicates that the company is becoming mature and is starting to prioritize profitability.

"It is normal for companies to lay off workers to recruit new employees," Levy said. 9% of the lay off ratio is not a small number, but Tesla is now in the growth stage, it needs to lose redundant "fat" to become more efficient.

Before announcing the layoff plan, Tesla's share price has risen 5% in recent years, the best performance since February 2014. After the announcement of the layoffs, share prices fell, but remained on the rise.

Despite its excellent performance in stock prices, the company seems to have faced difficulties recently. Tesla has spent billions of dollars to expand the production of Model 3. Model 3 is Tesla's low price vehicle. It is the company's first attempt to produce cars for the mass market.

Tesla has been criticized for failing to achieve its output targets. Tesla's current capacity target is that by the end of this month, the output of a single week Model 3 will reach 5000.

In addition, Mask also hopes Tesla will make profits in the third quarter of this year and has large cash flow. But analysts believe the company will still need to continue financing at the end of the first quarter of 2019.

Tesla's management has also changed recently, with several executives leaving in the past few months.

Tesla has grown rapidly in recent years. Even after announcing a massive layoff plan on Tuesday, the company recruited new employees this year, much more than in late 2017.

In addition, it is worth mentioning that the layoff plan does not involve employees in the production department. (small treasure)

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