Tesla restructuring will have substantial impact on its energy division

Tesla restructuring will have substantial impact on its energy division

According to a Reuters report, Tesla CEO Elon Musk’s announcement about the company’s restructuring plans in May 2018 will have a substantial impact on the Tesla Energy division.

In connection with the last-month announcement of plans to restructure Tesla Motors and flatten its management, it was revealed last week by Musk that the move will result in the laying off of nearly 9% of the company’s workforce.

A recent Reuters report has revealed that restructuring by Tesla will deliver a big blow to Tesla Energy, which had already undergone a significant restructuring two years back, when Tesla acquired SolarCity. That restructuring resulted in jobs losses for 20% of SolarCity’s workforce, in an effort to eliminate duplicate positions from the two organizations.

As per the report, the Tesla Energy division will again be hit hard by the latest Tesla restructuring move announced by Musk, because it will apparently lead to the shutdown of 13 or 14 of the company’s 60 solar installation facilities.

Going by an internal company list reviewed by Reuters, the impending closure of 13-14 solar installation facilities will affect the jobs of employees in 9 states in which the closures are targeted. These states include California, Texas, Maryland, New York, New Jersey, New Hampshire, Delaware, Connecticut, and Arizona.