August 20, 2018
Latest News

Elon Musk: Tesla to lay off 9 pct. of its workers

 File photo taken Feb. 26, 2018, showing the Tesla Model S P100D during its unveiling at an event in South Korea. EFE-EPA/YONHAP/Use Prohibited in South Korea/File

File photo taken Feb. 26, 2018, showing the Tesla Model S P100D during its unveiling at an event in South Korea. EFE-EPA/YONHAP/Use Prohibited in South Korea/File

Washington, Jun 12 (efe-epa).- Tesla CEO Elon Musk announced on Tuesday that the luxury auto manufacturing firm will lay off 9 percent of its workforce to show that it can be profitable after being unable to move into the black so far in the 15 years since it was founded.

Musk sent a letter to Tesla employees saying that "As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company."

"These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months," he added, referring to the firm's premier electric vehicle.

The measure means that some 4,100 of the firm's 46,000 employees will lose their jobs, although the layoffs will not affect operations at the factory producing the Model 3.

The firm's billionaire founder also told Tesla employees that the company will not renew the agreement it has with Home Depot to rent space at some 800 of the latter's stores to sell its home solar panel products.

Musk said that "In order to minimize the impact, Tesla is providing significant salary and stock vesting (proportionate to length of service) to those we are letting go," and - regarding the massive layoffs, he added that he was "making this hard decision now so that we never have to do this again."

In May, Musk announced a significant reorganization of Tesla in the face of the economic difficulties it was facing and inability to turn a profit.

Tesla's losses increased by 97.5 percent to just under $785 million in the first quarter of 2018, despite the fact that earnings rose by 26.4 percent to more than $3.4 billion.

Musk has denied that the firm was having financial problems, although key sector analysts have said that Tesla has been rapidly consuming its capital reserves and will probably need cash to stay afloat by the end of this year or the beginning of 2019.

News history
Maduro warns businesses against price increases after minimum wage hike

Caracas, Aug 19 (efe-epa).- Venezuelan President Nicolas Maduro on Sunday warned businesses against increasing prices following an increase in minimum wage...

New Zealand freezes salaries, allowances of lawmakers for a year

Sydney, Australia, Aug 20 (efe-epa).- The prime minister of New Zealand announced on Monday that the salaries and allowances of lawmakers would be frozen...

Australia postpones emissions reduction law due to leadership crisis

Sydney, Australia, Aug 20 (efe-epa).- The Australian Prime Minister announced on Monday that he is postponing his planned emissions reduction legislation as...

Japan to introduce AI robots in schools to boost spoken English skills

Tokyo, Aug 19 (efe-epa).- The government of Japan is planning to introduce English-speaking artificial intelligence robots in classrooms to help children...

Death toll in Genoa bridge collapse climbs to 41

Rome, Aug 18 (efe-epa).- The death toll in a bridge collapse in the Italian city of Genoa climbed to 41 even as preparations were underway for a state...

Worry about price of gasoline keeps cars lining up at Venezuela gas stations

Caracas, Aug 17 (efe-epa).- Long lines of cars at Venezuela's gas stations continue due to the uncertainty about the price of gasoline, the cheapest in the...

Combined-cycle power plant, LNG regasification terminal inaugurated in Panama

Colon, Panama, Aug 17 (efe-epa).- A 381-megawatt combined-cycle power plant and Central America's first regasification terminal for liquefied natural gas...

Canceling Mexico City's new airport would cost $5.25 bn

Mexico City, Aug 17 (EFE).- Canceling the construction of a new international airport for the Mexican capital would mean writing off roughly 100 billion...

Bayer rejects media report of fresh Dicamba lawsuits

Madrid, Aug 17 (efe-epa).- Bayer AG on Friday rejected a report by German magazine WirtschaftsWoche, which claimed that farmers in the US had filed...

Air France-KLM shares drop as new CEO meets union resistance

Madrid, Aug 17 (efe-epa).- Shares in Air France-KLM trade lower on Friday after the airline named Air Canada executive Benjamin Smith as its new chief...

General Budget 2018-19

Hong Kong, Aug 17 (efe-epa).- "Incredible India," goes the tourism ad jingle. Incredible is one word for markets in the giant Asian economy right now,...

Italy govt may water down fiscal stimulus plans: Capital Economics

Madrid, Aug 17 (efe-epa).- It is increasingly likely that the Italian government will implement some form of fiscal stimulus in the 2019 budget, and if so,...

Annual press conference Rheinmetall Group

Madrid, Aug 17 (efe-epa).- Rheinmetall AG said Friday that it has received an order from Australia for 211 Boxer armored vehicles, according to a report...

Malaysia central bank reports slower Q2 growth due to supply disruptions

Kuala Lumpur, Aug 17 (efe-epa).- Supply disruptions contributed to slower economic growth in the second quarter of 2018, Malaysia's central bank said on...

Reserve Bank of Australia warns on impact of drought

Sydney, Australia, Aug 17 (efe-epa).- The governor of the Reserve Bank of Australia on Friday warned of the impact of the eastern Australian drought on the...

Redenomination of Venezuelan currency made official in government gazette

Caracas, Aug 16 (efe-epa).- The redenomination of Venezuela's national currency, the bolivar, which will eliminate five zeros from the current currency,...

Lopez Obrador promises to rescue Mexican rural areas

Mexico City, Aug 16 (efe-epa).- Mexican President-elect Andres Manuel Lopez Obrador on Thursday promised that when he takes office on Dec. 1 one of his...

HP Inc. relying on innovation to expand its market

Panama City, Aug 16 (efe-epa).- Aiming at millennials and offering an immersive and high-quality experience are the basis for the HP Inc. strategy to expand...

State companies agree to study potential of Bolivian oil, gas reservoir

La Paz, Aug 16 (efe-epa).- A pair of state energy companies - Bolivia's YPFB and Argentina's YPF - signed an agreement Thursday to study the potential of an...

Walmart's share price soars due to strong revenue gains

New York, Aug 16 (efe-epa).- Walmart's share price soared on Thursday as investors focused on the retail giant's strong quarterly revenue gains and shrugged...

Underground Hong Kong high-speed rail link confirmed to be "safe and sound"

Hong Kong, China, Aug 16 (efe-epa).- The Hong Kong Secretary for Transport and Housing on Thursday confirmed that a new underground section of a high-speed...

Global delicacies served up on Day 1 of Hong Kong Food Expo

Hong Kong, China, Aug 16 (efe-epa).- A wide pallet of flavors and delicacies was being showcased Thursday in Hong Kong on the opening day of the 29th Food...

Seoul stocks drop to 15-month low due to depreciation of won

Seoul, Aug 16 (efe-epa).- Shares on the Korea exchange on Thursday fell to their lowest level in 15 months due to the depreciation of the won amid fears of...

Turkish lira on track for third straight gain against the dollar

Madrid, Aug 16 (efe-epa).- The Turkish lira rose for a third straight session against the United States dollar on Thursday, suggesting further stabilization...

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.