Tesla laid off dozens of salespeople after its disappointing Q1 delivery report

Kyle Grillot/Reuters

Tesla CEO Elon Musk.

• Tesla laid off "several dozen" sales employees on April 4.

• The cuts impacted employees in Chicago; Brooklyn, New York; and Tampa, Florida.

• A Tesla representative confirmed the layoffs to Business Insider and said the affected stores remain open.
• Tesla announced a shift in its retail strategy in February the company said would lead to layoffs.

Tesla laid off "several dozen" sales employees on April 4, Bloomberg's Dana Hull first reported. The cuts impacted employees in Chicago; Brooklyn, New York; and Tampa, Florida.

A Tesla representative confirmed the layoffs to Business Insider and said the affected stores remain open.

Read more: The biggest question for Tesla is whether the company can make steady profits on its cars

The electric car-maker said in February that it would close many of its stores and convert the remaining stores into galleries and information centers as it shifts to an online-only sales model. The move would lead to layoffs, Tesla CEO Elon Musk said during a conference call that followed the announcement.

Tesla partially reversed the store closures in March, saying it would "keep significantly more stores open than previously announced." Musk later said in a March email to employees that the best-performing stores would remain open, while those that did not generate sufficient revenue would be closed, adding that Tesla would use a similar strategy to evaluate salespeople.

The April 4 cuts came the day after Tesla announced first-quarter delivery numbers that represented a 31% decrease from the prior quarter and fell below analyst estimates, but were a 110% increase from the first quarter of 2018.

Since late 2018, Tesla has made significant changes to the incentive plans for its salespeople. The company has undergone multiple rounds of layoffs in the past year.

Read Bloomberg's full story here.

Have you worked for Tesla? Do you have a story to share? Contact this reporter at mmatousek@businessinsider.com.

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