Tesla would not say how much money the layoffs would save, but said no factory workers would be affected as the company continues to ramp up production of its lower-priced Model 3 compact vehicle.
The cuts come as the company aims to shrink costs and become profitable, Musk said.
The company added that its rapid growth over the past several years has resulted in some duplication of roles and job functions.
Musk referenced "a company-wide restructuring", which was reported last month by Electrek.
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"Given that Tesla has never made an annual profit in the nearly 15 years since we have existed, profit is obviously not what motivates us", Tesla said.
Tesla is cutting 9% of its workers as part of a reorganization created to reduce costs and help the electric automaker become profitable, according to an email CEO Elon Musk sent to employees Tuesday and obtained by Fortune.
Home Depot's relationship with Tesla will continue through the end of the year, and the company "plans to continue offering solar options to our customers", according to an emailed statement from Steve Holmes, a spokesman for the retailer. That is a valid and fair criticism of Tesla's history to date. Moreover, he said that this round of layoffs is necessary so that "we never have to do this again". So a nine-percent cut means letting more than 3,000 workers go.
Tesla's latest annual filing last December showed it had 37,543 full-time employees. Tesla still has a significant need for production workers as it tries to reach Model 3 manufacturing targets, he wrote in the email.
Musk also announced that the company's solar panel unit has made a decision to end its agreement to sell via Home Depot stores so it can focus on sales in Tesla's company stores and online. Each time, after a few quarters of small profits, Tesla would ramp up production of another vehicle model-first the Model X, then the Model 3-and rack up more big losses, as this chart from Bloomberg shows.