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Tesla to reduce workforce

Tesla to reduce its workforce by 7 per cent after the "most challenging" year in its history. 
Posted on 21 January, 2019
Tesla to reduce workforce

Electric car manufacturer Tesla says it will reduce its workforce by 7 per cent after its "most challenging" year.

In an email to staff on the firm's website, Tesla founder Elon Musk said that growth had been strong, but it was difficult to build Teslas with their new and developing technology as cheaply as conventional cars, reports the BBC. 

Tesla employs more than 45,000 people, indicating it will cut around 3,000.

However, Musk said 2018 was Tesla's "most successful" yet, in which it delivered almost as many cars as it had in all the previous years of its existence combined.

"This quarter will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit," he wrote.

"However, starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles.

"Moreover, we need to continue making progress towards lower priced variants of Model 3."

He said Tesla had "no choice" but to reduce fulltime employee headcount and retain "only the most critical temps and contractors".

He added the firm would need to make these cuts while "increasing the Model 3 production rate" and making many "manufacturing engineering improvements in the coming months".