Tesla slashes 3,000 jobs

The car-maker is hoping the cuts, which comprise almost 10% of its workforce, will cut costs.

US company Tesla, which specalises in electric cars and clean energy, is cutting some 8% of its workforce as part of a restructuring exercise.

The layoffs, which number more than 3,000 out of a 37,000-strong workforce, will affect salaried employees; most probably those working at Tesla's corporate headquarters in Silicon Valley. Those working on production lines will be left untouched. 

Co-founder and CEO Elon Musk said that the restructuring was aimed at making the company “sustainably profitable”.

In an e-mail to employees, which Musk later posted on Twitter, he said that “Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today."



Tesla under fire

Musk was recently taken to task by the United Auto Workers association for criticism he made on Twitter against unions. 

Meanwhile, a former safety director at the company has alleged that he was fired for raising safety issues.

Carlos Ramirez has filed a lawsuit against the company, in which he alleges, among other things, that workplace injuries were not properly reported or treated, and that the company failed to comply with permits.

Ramirez also claims that he was threatened by the company for bringing these matters to its attention - and that he was later fired for false accusations of bullying.

However, according to a Tesla representative, he was terminated for repeatedly engaging in "harassing workplace behaviour" and using "extremely inappropriate language that violated any reasonable standard".

California regulators are currently investigating worker conditions at the company's in Fremont.

Click here for more HRM News