When Tesla acquired SolarCity in 2016, its headcount increased to more than 30,000 employees.
On Tuesday, Musk tweeted that the company will cut 9 percent of its workforce as part of the restructuring and to "become profitable".
The email then shifts in tone and notes that the cuts will not impact the company's delayed production schedule for its latest auto model: "These cuts were nearly entirely made form 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".
At the company's annual shareholder meeting earlier this month, Musk said he expected the Palo Alto, California, company to post a quarterly profit during the July-September period.
Despite glowing reviews and a cult-like following of eager buyers, new Model 3s have trickled out of Tesla's factories months behind schedule. Tesla isn't letting go any production associates, as the company is trying to ramp up Model 3 production.
‘NBA champions wont go to White House
Golden State Warriors head coach Steve Kerr is the most admirable man in the National Basketball Association right now. After all, they didn't visit Trump last season either. "But we have other teams that are coming".
Tesla has never been profitable in its 15-year existence.
As described previously, we are conducting a comprehensive organizational restructuring across our whole company. For almost all of its history, Tesla has put up losses while investing heavily in technology, manufacturing plants and an extensive car-charging network.
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.
Electric auto maker Tesla Inc.is laying off about 3,600 white-collar workers as it slashes costs in an effort to become profitable. I also want to emphasize that we are making this hard decision now so that we never have to do this again.
The delays and higher costs have put Tesla into risky territory where it is rapidly running out of cash and investors have become nervous about lending the company more money. The layoffs would hit about 3,800 employees, company-wide.