Elon Musk announces Tesla to cut 9 percent of jobs

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"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 hard to justify today".

Mr Musk said the job cuts were a "difficult decision".

To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company.

The email then shifts in tone and notes that the cuts will not impact the company's delayed production schedule for its latest auto model: "These cuts were nearly entirely made form our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months". Employees told the paper that they received "little or no warnings" before the firings, which reportedly targeted 400 to 700 employees, leading to "lowered morale through many departments".

On Tuesday, Musk tweeted that the company will cut 9 percent of its workforce as part of the restructuring and to "become profitable". For almost all of its history, Tesla has put up losses while investing heavily in technology, manufacturing plants and an extensive car-charging network.

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Musk said that the layoffs do not affect production staff and stressed that this wouldn't hurt the company's efforts to hit big targets for production of the Model 3 sedan.

A sign is seen outside Tesla Motors' new showroom in Manhattan's Meatpacking District in New York City, U.S., December 14, 2017.

Musk also said that Tesla had decided not to renew a residential sales agreement with Home Depot (HD.N), and would focus instead on selling its solar products through its own stores and website.

"The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations", it said. I'm deeply grateful for your many contributions to our mission.

As many as 9% of Tesla's workforce will be let go. We must continue to drive that forward for the good of the world.

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