Elon Musk to Tesla employees: Tesla is “conducting a comprehensive organizational restructuring”

Elon Musk to Tesla employees: Tesla is “conducting a comprehensive organizational restructuring”

Electric vehicle maker Tesla Motors CEO Elon Musk has informed the employees in an email sent in May 2018 that the company is “conducting a comprehensive organizational restructuring” across the company. Tesla had earlier informed that the company will reduce costs in order to reduce its quarterly cash burn. Musk had indicated in a recent investor call that the company will soon turn profitable.

The report was published first by electric vehicle magazine Electrek. Along with obtaining Musk’s email sent to Tesla employees in May, Electrek has also obtained information about a currently-ongoing round of layoffs at the automaker. As a result of the layoffs, nearly 9 percent of Tesla employees are likely to lose their jobs.

The email sent by Musk to Tesla employees evidently coincided with an announcement by the executive in May that Tesla apparently has some plans underway to flatten its management and undergo a “company-wide restructuring,” with the objective of achieving profitability during the second half of 2018.

Musk has also added in the email that, as part of the comprehensive reorganization, Tesla would be “flattening the management structure” for the purpose of bringing about an improvement in communications. The automaker also plans to combine functions where practical, and cut the activities which are not vital for its mission’s success.

Musk has not given any explanation about what would be the consequence of Tesla’s move to flatten the management structure. However, it is being reported that the new round of layoffs at the company were a part of its reorganization plans.