Tesla will cut 9% of its employees to reduce costs and become profitable, company CEO Elon Musk said in a statement on social media on Tuesday.
The US official said that the measure is due to a “comprehensive organizational restructuring” due to the evolution of the company, which has resulted in a “certain duplication of functions” that are no longer justified.
He also announced the end of a sales agreement with Home Depot to focus on solar energy sales in Tesla’s physical stores and online.
Musk says that the cut of personnel will not affect the production objectives of his most recent vehicle, the Model 3, during the next months.
“What drives us is our mission to accelerate the world’s transition to sustainable and clean energy, but we will never achieve that mission unless we finally demonstrate that we can be profitably sustainable,” Musk said in the statement.
Musk also said that Tesla will inform employees who are affected by the cut this week and assured that the decision was made by critically evaluating the skills of each individual in the company.
“Tesla will continue to hire outstanding talent in critical roles as we move forward and there is still a great need for additional production personnel, I also want to emphasize that we are taking this difficult decision now so we never have to do this again,” the entrepreneur wrote.