Tesla cuts 9 percent of workforce in bid to post a profit

Posted at 9:17 PM, Jun 12, 2018
and last updated 2018-06-12 21:17:45-04

Electric car maker Tesla Inc. is laying off about 3,600 workers. It's all part of an effort to post an annual profit for the first time in 15 years of business.

CEO Elon Musk says in an e-mail to workers Tuesday that the cuts amount to about 9 percent of the company's workforce of 40,000. The e-mail did not say how much money the cuts would save.

All of those cut are expected to be white-collar workers. The move will not affect factory workers as Tesla continues to ramp up production of its lower-priced Model 3 compact car. In fact, Musk says there's still a significant need for additional production workers.

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