Skip to Content
Silicon Valley

Tesla’s reorganization will slash thousands of jobs

June 12, 2018

The car company is making some tough cuts in the name of profit.

The news: In a company e-mail today (that he then tweeted), Tesla CEO Elon Musk broke the news that about 9 percent of the company’s workforce will be let go. According to Electrek, as of March, Tesla had 37,000 employees. That translates to layoffs of around 3,300 workers.

Why? Musk said that the intent is to reduce costs by removing people serving in duplicate roles or in positions that no longer make sense for the company.

Why it matters: From layoffs to a recent production shutdown meant to correct for over-reliance on robots, the company has been willing to go to drastic measures to get things on track. Cash flow in the second half of 2018 will indicate whether these difficult moves were worth it for the business.

Deep Dive

Silicon Valley

Here’s how a Twitter engineer says it will break in the coming weeks

One insider says the company’s current staffing isn’t able to sustain the platform.

Twitter’s potential collapse could wipe out vast records of recent human history

What happens when the world’s knowledge is held in a quasi-public square owned by a private company that could soon go out of business?

Twitter may have lost more than a million users since Elon Musk took over

Estimates from Bot Sentinel suggest that more than 875,000 users deactivated their accounts between October 27 and November 1, while half a million more were suspended.

Former Twitter employees fear the platform might only last weeks

An ultimatum by Elon Musk demanding "extremely hardcore" working culture appears to have backfired. Insiders fear this could spell the end without drastic changes.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.