Billionaire Elon Musk, while serving as the head of Tesla, announced that he will lay off 9% of the staff. In terms of the number of people, this amounts to four thousand individuals. The reason is the company’s cost reduction. Elon Musk’s internal order was published by Reuters, confirming the official statement.
Billionaire Elon Musk
It is noteworthy that experts associate the businessman’s actions with insufficient funds for the space program. Therefore, some unprofitable projects are being scaled back, shifting focus to electric vehicles. Company managers admit that the release of the new Model 3 is behind schedule. Elon Musk hopes that focusing on this large-scale project will shorten the timelines.
Unconfirmed reports suggest that the delay is due to a lack of components and assemblies for the vehicle.
Accordingly, no process modernization will help reduce the timelines. Elon Musk announced plans to produce 5,000 cars per week, with a forecast for the second quarter of 2018. It remains to be hoped that the American entrepreneur did not lay off 4,000 people on his own initiative, as in the US, such layoffs are often subject to fines and compensation due to union regulations.
