In a push toward profitability, Tesla is laying off 4,100 employees, 9 percent of its workforce, according to CNBC.
Tesla CEO Elon Musk said the "comprehensive organizational restructuring" is an effort to make an annual profit for the first time in the company's history and will reduce redundant positions and job functions across the company. No production positions were cut, and Tesla is still attempting to reach its Model 3 production goals.
"This week, we are informing those whose roles are impacted by this action. We made these decisions by evaluating the criticality of each position, whether certain jobs could be done more efficiently and productively, and by assessing the specific skills and abilities of each individual in the company," Mr. Musk wrote in an email to Tesla employees.
Mr. Musk clarified that even with these layoffs Tesla is hiring production staff.