Electric Vehicle leader just made it known in a memo sent to employees that the company will be parting with 9% of its workforce in a difficult but necessary move for the company amidst its drive towards profitability.

This move was also officially made known by the company’s CEO Elon Musk in a very recent tweet where he also revealed the letter sent company-wide which stated that the company in a bid to reduce costs and boost profitability will be letting go of a number of salaried employees but also made it clear that the employees in the production wing won’t be affected and also that this move won’t affect the production of the Model 3 vehicle.

The letter also stated that these cuts were made for duplicate roles and that it’s not expected to affect overall productivity at the company, Tesla will be letting go of about 4,100 out of its total 46,000 employee workforce in this restructuring move which is also intended to flatten management structure at the company.

Also involved in this re-organization move is Tesla’s discontinuation of selling its storage products through Home Depot stores but will offer the employees at those spots positions in the company’s retail unit, Many employees which were added with the company’s acquisition of SolarCity were majorly affected in the move concerning the sale of its products at various Home Depot stores.

Tesla also clarifies that amidst this lay-offs, It will still continue to hire great talent in very crucial roles with a need for more production personnel to be added to the company.

Tesla in its drive towards profitability while producing clean energy solutions for global use will have to find ways of proving its business is sustainable by producing profits to be in good terms with Wall Street and this indicates part of those painstaking moves which the company will have to go through in order to do this.

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