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.
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.