Tesla‘s January layoffs impacted at least 1,017 California employees, according to the company’s filings with the state’s Employment Development Department that were obtained by CNBC. Bloomberg first reported on the number of California employees effected.
Addressing analyst’s questions about the global economy and a possible recession in 2019, Musk said:
“Getting those costs down, variable costs and fixed costs, is what allows us to lower the price and be financially sustainable and achieve our mission of environmental sustainability. So, we have to be absolute zealots about this. There’s no question.”
He also said:
“I do think that the economy moves in cycles, and there’s clearly a significant risk of a recession over the next 12 to 18 months. But I’m confident that Tesla will remain slightly profitable even if there is a significant recession, and then be all the stronger for it when the recession ends. But we have to be relentless about costs in order to make affordable cars and not go bankrupt. That’s what our head count reduction is about. Yeah. We have to be super hardcore about it. It’s the only way to make affordable cars.”
Tesla generated $7.23 billion in total revenue in the fourth quarter of 2018, more than double its $3.29 billion in revenue during the same period a year earlier, following a 9 percent round of layoffs in June. Its profits declined from the third quarter, however, and the company will need to pay off $920 million in debt due March 1.