Tesla to lay off up to 9% of its employees as it 'restructures'

Chris Pizzello / AP

Tesla will fire up to 9% of its employees in an upcoming round of layoffs, according to Electrek.

• Tesla will fire up to 9% of its employees in a round of layoffs that began on Monday, Electrek reports.
• Tesla did not immediately respond to a request for comment.
• The layoffs will not affect the Model 3 ramp up.
• During the company's first-quarter earnings call in May, CEO Elon Musk said the company would begin restructuring operations in an effort to meet its profitability goals.
• Musk has said the company will become profitable in the second half of the year and won't need to raise money. He reiterated this during the company's fourth-quarter earnings call earlier this month.

Tesla will fire up to 9% of its employees in a round of layoffs that began on Monday, Electrek reports.

Tesla did not immediately respond to a request for comment.

During the company's first-quarter earnings call in May, CEO Elon Musk said the company would begin restructuring operations in an effort to meet its profitability goals. At the time, Musk said that this would entail a "flattening the management structure."

Musk didn't give many details about what the effort would look like, though he mentioned the company's overreliance on third-party suppliers.

In a letter Musk wrote to employees in May, he said the company would reevaluate all of its contractors.

Musk has said the company will become profitable in the second half of the year and won't need to raise money for the rest of the year, despite skepticism from some investors and analysts. Tesla has been known to spend cash quickly and post consistent losses in the 15 years since its founding.

The company posted an adjusted loss of $3.35 per share on revenue of $3.41 billion during the first quarter. Analysts had predicted an adjusted loss of $3.42 per share on revenue of $3.32 billion, according to Bloomberg.

This is a developing story. Check back for updates.

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