EMCC European Monitoring Centre on Change

Tesla

Company/Organisation:
Tesla

Geographic Location

Country: World

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 46000

Employment Effects

Announcement Date: 12-06-2018
Planned Job Reductions min: 4000
Planned Job Reductions max: 4000
Type of Restructuring: Internal restructuring
Employment Effect Start: 12-06-2018
Foreseen End Date: 30-06-2018
Direct Dismissals: 4000

Additional Information

In an email sent to its employees, the CEO of Tesla, has announced that the company will lay off about 9% of its worldwide workforce. Therefore, about 4,000 people will leave the company in the next weeks. The layoffs will primarily affect salaried employees, sparing production-line workers as the company ramps up Model 3 production. The job cuts will occur on 'some job functions that were no longer necessary', added the CEO. 

During Tesla's first-quarter earnings call in May, the CEO said the company would begin restructuring operation with the aim to meet its profitability goals. The restructuring would entail 'flattening the management structure', but dismissals weren't mentioned; the new decision has surprised Tesla' employees.