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In a Robustly Redundant Labor Market Most "Will Find New Jobs Quickly"



(p. A1) Tesla Inc. on Tuesday [June 12, 2018] said it will cut about 9% of its workforce in an effort to deliver its first profit during a make-or-break period of building a mass-market electric car.

The layoffs of about 3,500 employees come as Chief Executive Elon Musk reorganizes Tesla's management structure to make it flatter, and as the company tries to ramp up production of the all-electric Model 3 compact sedan.

In a memo to employees, Mr. Musk said the job cuts are mostly aimed at salaried staff and won't affect production workers assembling the company's vehicles. "This will not affect our ability to reach Model 3 production targets in the coming months," he wrote.


. . .


(p. A8) "What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable," Mr. Musk wrote in the email to employees Tuesday. "That is a valid and fair criticism of Tesla's history to date."


. . .


On Twitter, Mr. Musk acknowledged that he was losing good people. "I think they will find new jobs quickly," he said.



For the full story, see:

Higgins, Tim. "Tesla to Cut Workforce by 9%, In Bid for Sustainable Profit." The Wall Street Journal (Wednesday, June 13, 2018): A1 & A8.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date June 12, 2018, and has the title "Tesla Cutting About 9% of Global Workforce.")






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