Tesla told employees it will cut about 9 percent of its workforce, trimming mostly salaried positions.

Tesla currently employs approximately 46,000 workers, which means the reductions will impact about 4,100 jobs.

In mid-May, Tesla CEO Elon Musk had warned there would be a “thorough reorganization” of the company, which has struggled to meet production targets and achieve profitability. </s> Tesla announced on Tuesday that it would cut 9pc of jobs across the company. Chief executive Elon Musk said in an internal memo that his company’s growth had lead to what he called “duplication of roles”.

“Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us,” Musk wrote in the internal memo announcing the job cuts.

“What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable. That is a valid and fair criticism of Tesla’s history to date.”

The email from Musk said... </s> Image copyright Getty Images Image caption Tesla's Model 3 is crucial to the company's profitability

Tesla said it plans to cut 9% of its workforce as part of a restructuring intended to reduce costs and boost profitability.

The job cuts at Elon Musk's electric car maker come as it tries to increase production of its Model 3 sedan and turn a quarterly profit this year.

Tesla said the more than 3,000 cuts would affect mostly salaried employees and not those making its cars.

Mr Musk said the move had been a "difficult decision".

Tesla employed more than 37,000 people at the end of last year.

"Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us," he wrote in an email to employees and posted on Twitter.

"What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we can eventually demonstrate that we can be sustainably profitable."

Is Tesla heading for trouble?

Musk: No 'bonehead' questions please

Last month Mr Musk said the company was planning a wide-ranging reorganisation that would flatten its management structure.

In the email, he said the cuts are aimed at eliminating duplicate roles and he does not expect them to affect the firm's production ability.

Tesla employees based at US DIY chain Home Depot and involved with the home solar business Tesla acquired when it bought SolarCity are among those affected, he said.

The "majority" of those workers will be offered positions in Tesla's retail business, Mr Musk added.

Michelle Krebs, an Autotrader analyst, said the job cuts were not a surprise.

"It is clear that Tesla is under tremendous pressure to finally turn a profit and is attempting to address it by cutting overhead," she said.

"Also notable is Tesla is not cutting production jobs at a time when pushing Model 3s out the door is a top priority." </s> Despite being one of the most popular brands or at least fashionable in the motoring world, there are many, such as myself that have had some concerns regarding the sustainability of the company.

It is no secret that Tesla has not been making money. Particularly since it simply struggles with the logistics of just getting cars off the production lines. It seems, however, that things might be finally coming to a head.

In a report via the BBC, Tesla has reported that it will be terminating thousands of jobs. This, as part of the companies first real attempt at a drive towards profitability. Yes, for a company that has been operating as long as this, this is genuinely the first time they are cynically and coldly trying to make money.

Who will be losing their job?

Tesla worldwide employs nearly 40,000 people. Clearly this is a significant amount, however, it seems that the job cuts are largely going to affect salary workers or those not on the production line.

Therefore, the job cuts should not directly affect those who are struggling to assemble the cars, but more likely middle management and possibly salesperson/s at dealerships.

Personally, while I think it’s good news that Tesla is trying to make money (at last) this is perhaps just the tip of the iceberg. I am personally of the belief that Tesla as a company might be in massive financial trouble. By massive, I mean on the verge of collapse.

No, I’m not saying that for dramatic effect either. I honestly believe it to be true.

I won’t go into the details why, but anyone with more than a passing interest in the company should check this out for themselves. Especially anyone who might be considering purchasing one of their cars.

What do you think? Is this a smart move for Tesla or is this just the tip of a very big financial iceberg? – Let us know in the comments! </s> General Motors will lay off 14,700 factory and white-collar workers in North America and put five plants up for possible closure as it restructures to cut costs and focus more on autonomous and electric vehicles.

The reduction includes 8,100 white-collar workers, some of whom will take buyouts and others who will be laid off. Most of the affected factories build cars that won't be sold in the U.S. after next year. They could close or they could get different vehicles to build. They will be part of contract talks with the United Auto Workers union next year.

Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario. Also affected are transmission factories in Warren, Michigan, as well as Baltimore.

About 6,000 factory workers could lose jobs in the U.S. and Canada, although some could transfer to truck plants.

General Motors is closing a Canadian plant at the cost of about 2,500 jobs, but that is apparently just a piece of a much broader, company-wide restructuring that will be announced as early as Monday.

A person briefed on the matter told The Associated Press that the plant being shuttered in Canada is just the beginning as GM prepares for the next economic downturn, shifting trade agreements under the Trump administration, and potential tariffs on imported automobiles.

The official spoke on condition of anonymity because the announcement hasn't been made public.

In the fall, the Detroit automaker offered buyouts to 18,000 white collar workers, but it has yet to say how many accepted, or if its's close to meeting the staff reduction goals it set to better withstand leaner times. </s> Tesla stock falls as the CEO visits the popular podcast, which was filmed and on YouTube.

Shares of electric car maker Tesla Inc. fell more than 6 percent early Friday after CEO Elon Musk appeared to smoke marijuana during an interview, and the company's accounting chief left after a month on the job.

Musk appeared on The Joe Rogan Experience overnight. About two hours into the podcast, which can be seen on YouTube, Musk inhales from what the host says is a combined marijuana-tobacco joint, which Rogan notes is legal. Rogan passes the joint to Musk, who also takes a sip of whiskey.

Shortly after smoking, Musk looks at his phone and laughs, telling Rogan he was getting texts from friends asking why he was smoking weed during the interview. Later Musk says he doesn't notice any effect from the joint, which he claims he rarely smokes.

As the video gained traction, more news hit: Early Friday, the Palo Alto, California, company announced that Chief Accounting Officer Dave Morton resigned after a month on the job, citing public attention and the fast pace of the post.

The company disclosed the departure in a regulatory filing.

"Since I joined Tesla on August 6th, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations," the company quoted Morton as saying in the filing with the U.S. Securities and Exchange Commission. "As a result, this caused me to reconsider my future. I want to be clear that I believe strongly in Tesla, its mission, and its future prospects, and I have no disagreements with Tesla's leadership or its financial reporting," Morton was quoted as saying.

Tesla is under extreme pressure to turn a sustained net profit starting this quarter, as promised by Musk. But in the second quarter it burned through $739.5 million in cash and lost a quarterly record $717.5 million.

Musk has said the company is producing more than 5,000 Model 3 electric cars per week, and cash generated from the sales will bring sustained quarterly profits. The Model 3 starts at $35,000, although the cheapest one that can be purchased at present costs $49,000.

Moody's Investor Service downgraded Tesla's debt into junk territory back in March, warning that Tesla won't have cash to cover $3.7 billion for normal operations, capital expenses and debt that comes due early next year. Tesla said cash from Model 3 sales will pay the bills and drive profits.

The company said its accounting functions will be overseen by the chief financial officer and corporate controller. Morton's resignation is effective immediately.

Watch Musk's visit on The Joe Rogan Experience below. </s> Tesla CEO Elon Musk said Friday that the company would continue to be publicly traded, weeks after suggesting that he would take the pioneering electric carmaker private.



Musk met Tesla´s board of directors on Thursday "and let them know that I believe the better path is for Tesla to remain public. The Board indicated that they agree," he wrote on the company blog.

Musk surprised markets on August 7 by announcing on Twitter he wanted to take Tesla private at $420 a share. But the shares have fallen more than 20 per cent since.

After the announcement the controversial entrepreneur came under extensive scrutiny over his Twitter statements related to the proposal, especially a claim that Tesla had 'secured' funding for the move.

Tesla shares tumbled on reports that the US Securities and Exchange Commission has subpoenaed Musk to talk about the tweet.

Normally such a major announcement — taking a huge company private — would be explained in detail beforehand to regulators.

Musk said Friday that based on his talks with shareholders, as well as an assessment by financial advisers Silver Lake, Goldman Sachs and Morgan Stanley, "it´s apparent that most of Tesla´s existing shareholders believe we are better off as a public company."

Even though the majority of shareholders "said they would remain with Tesla if we went private, the sentiment, in a nutshell, was ´please don´t do this,´" he wrote.

"I knew the process of going private would be challenging, but it´s clear that it would be even more time-consuming and distracting than initially anticipated."

Musk wrote that the company "must stay focused on ramping (up the) Model 3 and becoming profitable. We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable."

The Model 3 is a $35,000 mid-sized electric sedan that the company — which still has not made a profit — is banking will be its runaway hit.

Musk acknowledged that he was exhausted from overwork following the market-rattling August 7 tweet.

"This past year has been the most difficult and painful year of my career," Musk told the New York Times in an August 16 interview.

The newspaper said the swashbuckling CEO choked up at times as he talked about working endless hours trying to meet production deadlines, spending his 47th birthday in June — every hour of it — at work and almost missing his brother´s wedding.

The physical toll his job is taking meant life has "not been great, actually. I´ve had friends come by who are really concerned," he told the newspaper.

Musk described the infamous privatisation tweet — which included an assurance that funding for going private was secured — as an attempt to be transparent.

The news shocked investors, market analysts and even Tesla board members.

Musk explained on the company blog that his much scrutinized statements about financing were based on his conversations with Saudi Arabia´s sovereign wealth fund and other investors. </s> GM Announces Cuts At Car Assembly Plants In Michigan, Ohio, Canada

Enlarge this image toggle caption Ron Schwane/AP Ron Schwane/AP

Updated at 3:16 p.m. ET

General Motors says it plans to cease production of some models at three vehicle assembly plants in the U.S. and Canada in 2019. It also plans to cut production at two plants in the U.S. that make transmissions. The company said the moves are part of an effort to cut 15 percent of its workforce.

It's part of a major restructuring that will prioritize the company's electric and autonomous vehicle programs.

The decision, announced Monday, will impact Detroit-Hamtramck Assembly in Detroit, Lordstown Assembly in Warren, Ohio, and Oshawa Assembly in Oshawa, Ontario. Two transmission plants — one in White Marsh, Md., and another in Warren, Mich. — are also set to stop production.

GM says it is maintaining its profitable lineup of SUVs and trucks but will shift away from some of its smaller vehicles that haven't seen strong sales.

The company said it plans to halt production of the Chevrolet Cruze at the Lordstown plant in March. In Detroit, it plans to halt production of the Buick LaCrosse and Chevrolet Volt in March and the Cadillac CT6 and Chevrolet Impala in June. In Ontario, it plans to halt production of the Chevrolet Impala and Cadillac XTS by the final quarter of 2019.

"These tend to be the lower-margin vehicles," GM Chief Financial Officer Dhivya Suryadevara told reporters.

The company says 5,901 hourly employees and 804 salaried employees work at these plants.

"We are announcing the cessation of certain products resulting in a number of plants being without allocated volume to produce," GM spokesperson Julie Huston-Rough told NPR. She added that shutting down or closing a plant is an issue that must be discussed in negotiations with the United Auto Workers.

GM Chairman and CEO Mary Barra said the company is aiming to cut executive positions by 25 percent, as part of its overall push to cut it workforce. "We will achieve this through a combination of voluntary and involuntary programs," she said.

GM added that it expects to save some $6 billion by the end of 2020.

UAW Vice President Terry Dittes called it a "callous decision" that would be "profoundly damaging to our American workforce."

"The UAW and our members will confront this decision by GM through every legal, contractual and collective bargaining avenue open to our membership," the union said in a statement.

President Trump told reporters, "We don't like it; I believe they'll be opening up something else." He added that he's "not happy" about the announcement.

The communities impacted by the decision are digesting the news.

"They told me straight up there's nothing we can do," Ontario Premier Doug Ford told lawmakers, according to the CBC. He called the decision "absolutely devastating," and the broadcaster reported that thousands of workers at the Ontario plant stopped working Monday.

As Michigan Radio reported, Detroit Mayor Mike Duggan called the news "troubling" and said that the union and local officials are "working together to come up with a solution that works for GM and the employees."

Ohio politicians have also responded to the announcement. Arno Hill, the mayor of Lordstown, told NPR that he received a call from GM to inform him of the decision about five minutes before the news was released to the public. "Everybody's very downhearted," he said. "They know they're making a great product ... but they also realize that the car is not selling, and, you know, the key is to get another product for this plant."

"GM owes the community answers on how the rest of the supply chain will be impacted and what consequences its disastrous decision will have on the Mahoning Valley and our state," Ohio Sen. Sherrod Brown said in a statement. Ohio Gov. John Kasich called it "painful to see this happen to the plant's workers," noting the plant had been working with GM for more than 50 years.

Barra explained that GM is restructuring now, "while the company and the economy are strong, to stay in front of a fast-changing market."

That sentiment, as NPR's Jim Zarroli reported, is paired with a widespread expectation that the economy will slow down next year. He adds that there are also big questions about trade and rising interest rates.

"So there are just a lot of questions about where the market is going, whether sales have peaked," Zarroli reported. "I think GM is just trying to sort of get ahead of what it sees as an inevitable downturn." </s> General Motors is poised to close factories in Michigan, Ohio, Maryland and Canada, and slash 15 percent of its salaried workforce in a sweeping cost-cutting plan designed to boost its profits.

The Detroit-based automaker said it would end production by the end of 2019 at its Lordstown Assembly plant in northeast Ohio; its Detroit-Hamtramck Assembly plant in southeast Michigan; its Oshawa Assembly plant in Ontario; its Baltimore Operations parts plant; and its Warren Transmission Operations plant in southeast Michigan.

Assembly plants are job juggernauts. GM has about 1,500 employees at the Detroit plant, 1,600 at the Lordstown factory and 2,500 in Oshawa.

The announcement comes ahead of next year's contract talks with the United Auto Workers union, which could potentially lead to decisions to devote vehicles to those facilities.

But there's a serious chance that the plants close for good.

CEO Mary Barra is seeking to reposition GM for a future defined by self-driving cars, ride-sharing networks and electric vehicles.

The plan may signal the demise in the U.S. of several passenger cars that have been struggling, including the Chevrolet Cruze, the Chevrolet Impala and the Cadillac XTS.

The cuts will make GM "lean and agile" as the company aims to "lead in autonomous and lead in electric vehicles," Barra said.

Taken together, the moves will deliver more than $6 billion in additional annual cash flow by the end of 2020, GM said. That includes $4 billion in cost cuts and $1.5 billion in reduced capital expenditures.

GM said it would also close two additional plants outside of North America by the end of 2019. It will also continue with plans to close its plant in Gunsan, South Korea.

The workforce reduction will affect 15 percent of the company's salaried and salaried contract workforce. It's not clear how many of those cuts will be voluntary and how many will take the form of layoffs. GM offered buyouts to 18,000 workers several weeks ago.

The company said it would also have 25 percent fewer executives.
Tesla announces that it intends to cut 3000 jobs in an attempt to improve profitability. Many of those workers will be offered alternative jobs under the same employer.