CEO of Tesla, Elon Musk announced that the company will be cutting 7% of its full-time workforce to help sell its new Model 3 at a lower price.The company informs on staff cuts in e-mail to all employees, and posted the info on its website.
In a letter to employees, chief executive Elon Musk said the jobs cuts were necessary to improve profitability as it ramps up production of its crucial mass-market Model 3.
“Last year was the most challenging in Tesla’s history. We unfortunately have no choice but to reduce full-time employee headcount by approximately 7%,” Elon Musk said.
He added: “Tesla will make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months.
After announcing staff cuts in the near future Tesla stock is down as much as 9%. It is the second round of cuts this financial year after the company eliminated 4,100 jobs in June.