Tesla to cut 9% of its workforce

Resham Gupta
Last Updated: Jun 13 2018 15:48

BUSINESS- Elon Musk’s electric car company Tesla said it is planning to cut 9% of its task force as part of a restricting drive to reduce cost and boost profitability.

In an email to employees, Musk wrote, “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.

"What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we can eventually demonstrate that we can be sustainably profitable."

The more than 3,000 cuts will mostly affect salaried employees. Employees who work in car production units will not be affected.

Musk called the decision to lay off 3,000 employees a difficult one.