Mexican Media Brands
Tesla to Cut 3,200 Jobs
Tesla Inc., which expanded its workforce 30% in 2018, now says it must cut its staff by 7% (about 3,200 people) to lower product costs and help achieve sustainable profitability.
#workforcedevelopment
Share
Tesla Inc., which expanded its workforce 30% in 2018, now says it must cut its staff by 7% (about 3,200 people) to lower product costs and help achieve sustainable profitability.
Tesla posted a 4% profit in the third quarter last year and is likely to report a “tiny” profit for the final period, says CEO Elon Musk. But he tells employees via email that layoffs are unavoidable as the company struggles to deliver on a long-promised $35,000 version of its Model 3 electric sedan.
The cheapest version of the Model 3 in any market currently costs $44,000. “We need to reach more customers who can afford our vehicles,” Musk says.
Musk points out that the pressure to cut costs will rise dramatically this year. That’s because the $7,500 U.S. tax credit available to new Tesla’s customers is shrinking and will disappear entirely by year-end.
He says that offsetting the resulting rise in purchase price will require manufacturing improvements that enable the company to reduce costs, hike throughput and gain production economies of scale.
RELATED CONTENT
-
UPDATE: Unifor Ratifies GM Labor Pact by 86% Margin
Hourly workers at General Motors Co.’s CAMI assembly plant in Ingersoll, Ont., will vote today whether to accept an agreement to end a strike they began on Sept. 17.
-
On a Baby Bugatti EV, a Hybrid Boat and the Future of Works
On the diminutive electric Bugatti you didn’t know you wanted; interesting predictions about apps, electrification and data; a Scandinavian hybrid tourist boat development; the VW Arteon sedan; and employment considerations in car plants as a result of electrification
-
Report: Ford Targets Europe in Plan to Cut 24,000 Jobs Worldwide
Ford Motor Co. is pondering a plan that would shrink its 202,000-member global workforce by 12%, mostly through reductions in Europe, according to the U.K.’s Sunday Times.