Elon Musk-led Tesla had on Tuesday announced its plan to cut 9% of total workforce to become profitable.
Several employees of Tesla Inc, the American multinational corporation that specializes in electric vehicles, energy storage and solar panel manufacturing, had received an email for an important meeting before the lay-off was announced by the company.
A former employee of the company, based in Palo Alto, California, revealed her team received an email at 1 am, which asked them to clear four hours in their day’s schedule for a video conference.
Later, during the conference, about 250 employees were asked to leave, despite several staff members meeting their targets, she claimed.
Elon Musk-led Tesla had on Tuesday announced its plan to cut 9% of total workforce to become profitable.
The company said that it seeks to reduce costs and become profitable without endangering the critical production ramp-up for its Model 3 sedan.
In an email, billionaire Chief Executive Elon Musk said that the cuts were part of a simplification of Tesla’s management structure promised last month.
“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.
“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,” it said.
Tesla has been trying to hit a 5,000 per week production target of its Model 3 sedans after facing initial production hiccups. Last week, Musk said the carmaker should achieve its target by the end of June.
Cash Crunch
Tesla has been facing huge cash crunch as it continues to spend on its assembly line and prepares for new investments on projects such as the Model Y crossover and its Gigafactory.
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