Tesla is cutting 9% of its workforce in a company-wide restructuring. As CEO Elon Musk notes in a letter to employees, the company has never made an annual profit.
In his email, Musk said the layoffs primarily affected salaried positions and will not affect Model 3 production. Tesla has promised it will produce 5,000 Model 3 cars per week by July.
As of the time of this reporting, Tesla stock is up over 4%.
Difficult, but necessary Tesla reorg underway. My email to the company has already leaked to media. Here it is unfiltered: pic.twitter.com/4LToWoxScx
— Elon Musk (@elonmusk) June 12, 2018
The news comes as Tesla workers share testimony with the National Labor Review Board in a series of hearings. The NLRB is looking into complaints that say Tesla obstructed employee unionization efforts.