Tesla lays off roughly nine percent of workforce

Image source Peter McDermott

Image source Peter McDermott

He said Tesla's rapid growth in recent years contributed to "duplication of roles" and the creation of jobs that the company could no longer justify.

"These cuts were nearly entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months", Musk said in his note. It's not clear which departments will be most affected.

Tesla is reportedly planning to lay off approximately 4,100 of its 46,000 employees to cut costs.

Tweeting pictures of an email he said had been leaked to media, Musk said that the cuts were part of a simplification of Tesla's management structure promised last month. Toward the end of 2017, Tesla had around 37,000 employees.

Mr Musk said the job cuts were a "difficult decision".

"Given that Tesla has never made an annual profit in the nearly 15 years since we have existed, profit is obviously not what motivates us", he wrote in an email to employees and posted on Twitter.

Last month, Tesla CEO Elon Musk announced a vague plan to "restructure" the company in order to achieve profitability during the second half of the year.

Tesla (TSLA) is cutting 9% of its workforce at a time when the electric-car maker is aggressively ramping production for its Model 3 sedan, the company confirmed in a memo to employees Tuesday. The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations.

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