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Musk Is Laying Off Hundreds Of Staff From His California Assembly Plant

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Tim Pearce Energy Reporter
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Tesla has filed notices in California that it is laying off 420 workers from its Fremont, California, assembly plant, Bloomberg reported.

Tesla CEO Elon Musk announced on June 12 that he was cutting nearly a tenth of the electric car company’s workforce to try to turn a profit for the first time in the company’s nearly 15 years of existence. Another filing reveals that 86 employees are being cut from the company’s headquarters in Palo Alto. (RELATED: Tesla Is Cutting A Tenth Of Its Workforce)

Tesla employed 37,543 people at the time of its last filing in December, Reuters reported.

The California Worker Adjustment and Retraining Notification Act requires employers to notify the state when cutting at least 50 positions from any one location.

The layoffs should not affect the company’s ability to maintain and increase production of the Model 3 sedan. The positions cut are part of a larger process to reorganize and streamline responsibilities and eliminate redundancies within the company, Musk said in a company-wide email released June 12.

“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,” Musk said. (RELATED: Elon Musk Keeps Insisting Tesla Will Be Profitable One Day)

After continuously falling behind and missing production goals, Musk has set his latest mark at hitting 5,000 Model 3s a week by the end of June. Musk claimed in a shareholder meeting on June 5 that the company was on track to meet its goal, producing 3,500 cars a week at the time, The Verge reported.

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