October 17, 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
Wall Street gains push Seoul stocks up

Seoul, Oct 17 (efe-epa).- Stocks on the Korea Exchange on Wednesday rose following major gains on Wall Street a day earlier owing to solid company earnings,...

Global stocks extend rebound

Bangkok, Oct 17 (EFE).- Global stocks advanced Wednesday, as a rally in the U.S. spread across Asia and continued in Europe, according to a Dow Jone reports...

Tokyo stocks close up 1.29 percent

Tokyo, Oct 17 (efe-epa).- The Tokyo Stock Exchange's benchmark Nikkei index on Wednesday gained 291.88 points, or 1.29 percent, to close at 22,841.12.

Australian Parliament approves TPP-11

Sydney, Australia, Oct 17 (efe-epa).- Australia's Parliament on Wednesday approved the reworked Trans Pacific Partnership (TPP -11) trade deal, a step that...

Mediterranean concert welcomes new Iberia plane in New York

New York, USA., Oct 16 (efe-epa).- A concert of Mediterranean music, starring artists from different parts of the world and led by the Spanish composer...

President bets on tourism for Chile's development

Santiago, Oct 16 (EFE).- Tourism has become one of the major drivers of economic development in Chile, President Sebastian Piñera told the Federation of...

Colombian town makes its Golden Way a tourist attraction

By Jeimmy Paola Sierra

Colombian artisans craft variety of creations from palm thread

Sandona, Colombia, Oct 16 (EFE).- Palm thread is the main material used by the female artisans of this town in southern Colombia to weave hats, bags and...

Wall Street should think twice when it returns to Saudi Arabia

Madrid, Oct 16 (efe-epa).- Saudi Arabia didn't become a country with poor regard for human rights upon the alleged killing of the journalist Jamal...

Iberdrola agrees to sell Scottish Power Generation to Drax Group for $ 922.3M

New York, Oct 16. (efe-epa).- Iberdrola said Tuesday that it has agreed to sell its Scottish Power Generation Holdings Ltd business in the United Kingdom to...

UK SMEs given ombudsman access in wake of RBS, HBOS scandals

London, Oct 16 (efe-epa).- Smaller businesses will be granted access to the United Kingdom's Financial Ombudsman Service in the wake of SME lending scandals...

Germany issues 800m euro fine against Audi, concluding emissions proceedings

Madrid, Oct 16 (efe-epa).- German prosecutors have issued an 800 million euro ($925.8 million) fine against Audi AG concluding regulatory offense...

Shanghai stocks fall 0.85 percent

Shanghai, China, Oct 16, (efe-epa).- The Shanghai Stock Exchange's benchmark Composite index closed Tuesday down 21.77 points, or 0.85 percent, to stand at...

Japan says TPP-11 pact could come into effect by early 2019

Tokyo, Oct 16 (efe-epa).- Japan said on Tuesday that the process of member countries ratifying the regional trade agreement, formerly known as the...

Tokyo stocks close up 1.25 percent

Tokyo, Oct 16 (efe-epa).- The Tokyo Stock Exchange's benchmark Nikkei index on Tuesday gained 277.94 points, or 1.25 percent, to close at 22,549.24.

OPEC crude basket drops to $79.31

Vienna, Oct 16 (efe-epa).- The basket of crude oil used as a benchmark indicator by the Organization of Petroleum Exporting Countries fell to $79.31, the...

Inflation in China rises to 2.5 percent in September

Beijing, Oct 16 (efe-epa) .- China's Consumer Price Index (CPI), the main indicator of inflation, rose 2.5 percent year-on-year in September, up from 2.3...

South Sudan and Nigeria, two countries where people cannot afford to eat

Rome, Oct 16 (efe-epa).- Southern Sudan and northeastern Nigeria are the two places where people can least afford a plate of food, since it costs more than...

Microsoft co-founder Paul Allen dies

San Francisco, Oct 15 (efe-epa).- Paul Allen, who 43 years ago along with Bill Gates founded Microsoft, the company that revolutionized the software world...

Spain development minister touts country's infrastructure prowess

Lima, Oct 15 (efe-epa).- Spain's development minister on Monday kicked off his visit to Peru with a meeting with Peruvian senior officials, in which he...

Mexican reporter puts faces on cases of disappearance and femicide

Mexico City, Oct 15 (efe-epa).- Journalist Lydiette Carrion gathers in her book "La fosa de agua" (The grave of water) her research into the disappearances...

Colombian farmers aim to draw millennials back to the fields

Chinavita, Colombia, Oct 15 (efe-epa).- A group of Colombian farmers have taken a modern, more ecological approach to farming in hopes to draw millennials...

Scientists see modified seeds as key to preventing global food crisis

Mexico City, Oct 15 (EFE).- To feed the 10 billion people who are expected to inhabit the Earth in 2050, global food production must rise 50 percent over...

German police search Opel offices in diesel fraud probe

Berlin, Oct 15 (efe-epa).- German crime units and prosecutors on Monday searched two Opel offices in the western German cities of Rüsselsheim and...

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