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Money Tesla cuts nine per cent of staff as Elon Musk aims at profitability

06:15  13 june  2018
06:15  13 june  2018 Source:   cityam.com

Tesla sacks 9% of its workforce: Elon Musk announces major job losses

  Tesla sacks 9% of its workforce: Elon Musk announces major job losses Tesla is to let go approximately nine per cent of its workforce , after the company’s chief executive officer, Elon Musk, said it needs to “reduce costs and become profitable”.Musk said jobs would be lost from Tesla’s “salaried population”, but promised “no production associates” will be let go. In an email released by Musk on Twitter, the Tesla co-founder said the cuts will “not affect our ability to meet Model 3  production targets in the coming months.

The company is ready to be profitable , Tesla CEO Elon Musk recently wrote in an email to staff , and needs to whittle Musk wrote that he expects to reach full GAAP profitability in the third and fourth quarters of 2018. Originally, Musk aimed to produce 5,000 Model 3s a week by the end of 2017.

Elon Musk said the cuts will affect salaried staff , not factory works, with pressure mounting to meet Model 3 targets. Tesla is slashing thousands of jobs, its chief executive Elon Musk announced Tuesday, as the electronic car company attempts to hit production targets and reach profitability .

Electric car maker Tesla is cutting several thousand jobs across its workforce. © getty Electric car maker Tesla is cutting several thousand jobs across its workforce. Electric car maker Tesla is cutting several thousand jobs across its workforce in a bid to reduce its costs as it ramps up production on the Model 3, chief executive Elon Musk confirmed in a tweet last night.

In an email sent to staff, Musk said the cuts, equivalent to about nine per cent of staff, had been preplanned as part of a “thorough reorganisation” of Tesla’s management structure.

The company adjusted its production targets for the Model 3 down to 5,000 cars per week, to be reached by the end of June.

“As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9 percent of our colleagues across the company,” the email read.

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“These cuts were almost 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.”

a sign in front of a building © Provided by CityAM Musk also said an existing residential sales agreement with US chain Home Depot will not be renewed, and it would refocus on sales through its own channels.

Analysts expect Tesla to begin raising fresh capital later this year, despite statements from Musk that he expects it to hit profitability within the third or fourth quarter.

Tesla’s share price rose by 3.21 per cent to $342.77 at market close.

IMF puts itself at odds with Trump over US growth .
America’s yawning budget deficit could trigger an upsurge of inflation and interest rates that shakes financial markets, according to a report by the International Monetary Fund. In a concluding statement following its regular Article IV assessment of the US, the fund’s staff said the Republicans’ $1.5tn tax-cutting package, coupled with a $300bn spending boost, will drive the federal budget deficit to 4.5 per cent of gross domestic product by 2019, nearly double the level three years ago.

Source: http://uk.pressfrom.com/news/money/-263718-tesla-cuts-nine-per-cent-of-staff-as-elon-musk-aims-at-profitability/

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