Internal restructuring
Location of affected unit(s)
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.10 - Manufacture of motor vehicles

4,000 jobs
Number of planned job losses
Job loss
Announcement Date
12 June 2018
Employment effect (start)
12 June 2018
Foreseen end date
30 June 2018


In an email sent to its employees, the CEO of Tesla, has announced that the company will lay off about 9% of its worldwide workforce. Therefore, about 4,000 people will leave the company in the next weeks. The layoffs will primarily affect salaried employees, sparing production-line workers as the company ramps up Model 3 production. The job cuts will occur on 'some job functions that were no longer necessary', added the CEO. 

During Tesla's first-quarter earnings call in May, the CEO said the company would begin restructuring operation with the aim to meet its profitability goals. The restructuring would entail 'flattening the management structure', but dismissals weren't mentioned; the new decision has surprised Tesla' employees. 


  • 12 June 2018: Businessinsider
  • 14 June 2018: Businessinsider


Eurofound (2018), Tesla, Internal restructuring in World, factsheet number 94323, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/94323.