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Tesla CEO Elon Musk has revealed that the company is cutting nine percent of its workforce. The news was announced on Twitter and the Tesla CEO has said that this is part of restructuring in order to reduce costs and become profitable.

The changes will not affect the production of their Model 3 which has more than 400,000 orders for the car.

Tesla is yet to make a profit since the company launched, these job cuts will apparently be focused on streamlining management at Tesla. Elon Musk has said that the people who are being let go will receive significant salary and stock vesting.

It will be interesting to see if these changes can make the company profitable, they are hoping to scale up production of their model 3 in order to meet demand for the vehicle.

Difficult, but necessary Tesla reorg underway. My email to the company has already leaked to media. Here it is unfiltered: pic.twitter.com/4LToWoxScx

— Elon Musk (@elonmusk) June 12, 2018

Source Elon Musk, Car

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