Elon Musk announces Tesla to cut 9 percent of jobs

June 12 (Reuters) - Tesla Inc is cutting about 9 percent of jobs across the company, billionaire Chief Executive Elon Musk said on Tuesday, as it seeks to reduce costs without endangering the critical ramp up of production of its Model 3 sedan.

Tweeting pictures of an email he said had been leaked to media, Musk said that the cuts were part of a simplification of Tesla's management structure promised last month.

"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 percent of our colleagues across the company," the email read.

"These cuts were entirely 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."

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Tesla's Model X SUV
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Tesla's Model X SUV
Tesla Motors Inc.'s Model X vehicle is unveiled at Tesla's design studio in Hawthorne, California, U.S., on Thursday, Feb. 9, 2012. The Model X, touted by Tesla as faster than Porsche AG's 911 sports car and roomier than Audi AG's Q7 SUV, will be built in 2013 at the company's Fremont, California, plant that starts making the Model S this year. The CUV sports 'Falcon Doors,' dual AWD units, seating for seven and a price tag just under $50,000 after federal tax credits. (Photo by Tim Rue/Corbis via Getty Images)
Tesla Motors Inc.'s Model X vehicle is unveiled at Tesla's design studio in Hawthorne, California, U.S., on Thursday, Feb. 9, 2012. The Model X, touted by Tesla as faster than Porsche AG's 911 sports car and roomier than Audi AG's Q7 SUV, will be built in 2013 at the company's Fremont, California, plant that starts making the Model S this year. The CUV sports 'Falcon Doors,' dual AWD units, seating for seven and a price tag just under $50,000 after federal tax credits. (Photo by Tim Rue/Corbis via Getty Images)
Tesla Motors Inc.'s Model X vehicle is unveiled at Tesla's design studio in Hawthorne, California, U.S., on Thursday, Feb. 9, 2012. The Model X, touted by Tesla as faster than Porsche AG's 911 sports car and roomier than Audi AG's Q7 SUV, will be built in 2013 at the company's Fremont, California, plant that starts making the Model S this year. The CUV sports 'Falcon Doors,' dual AWD units, seating for seven and a price tag just under $50,000 after federal tax credits. (Photo by Tim Rue/Corbis via Getty Images)
Tesla Motors Inc.'s Model X vehicle is unveiled at Tesla's design studio in Hawthorne, California, U.S., on Thursday, Feb. 9, 2012. The Model X, touted by Tesla as faster than Porsche AG's 911 sports car and roomier than Audi AG's Q7 SUV, will be built in 2013 at the company's Fremont, California, plant that starts making the Model S this year. The CUV sports 'Falcon Doors,' dual AWD units, seating for seven and a price tag just under $50,000 after federal tax credits. (Photo by Tim Rue/Corbis via Getty Images)
The interior of a Tesla Motors Inc. Model X sport utility vehicle (SUV) is displayed during an event in Fremont, California, U.S., on Tuesday, Sept. 29, 2015. Elon Musk handed over the first six Model X SUVs to owners in California Tuesday night, as Tesla reached a milestone of having two all-electric vehicles in production at the same time. Photographer: David Paul Morris/Bloomberg via Getty Images
The interior of a Tesla Motors Inc. Model X sport utility vehicle (SUV) is displayed during an event in Fremont, California, U.S., on Tuesday, Sept. 29, 2015. Elon Musk handed over the first six Model X SUVs to owners in California Tuesday night, as Tesla reached a milestone of having two all-electric vehicles in production at the same time. Photographer: David Paul Morris/Bloomberg via Getty Images
The Tesla Motors Inc. Model X sport utility vehicle (SUV) is driven during an event in Fremont, California, U.S., on Tuesday, Sept. 29, 2015. Elon Musk handed over the first six Model X SUVs to owners in California Tuesday night, as Tesla reached a milestone of having two all-electric vehicles in production at the same time. Photographer: David Paul Morris/Bloomberg via Getty Images
The Tesla Motors Inc. Model X sport utility vehicle (SUV) is driven during an event in Fremont, California, U.S., on Tuesday, Sept. 29, 2015. Elon Musk handed over the first six Model X SUVs to owners in California Tuesday night, as Tesla reached a milestone of having two all-electric vehicles in production at the same time. Photographer: David Paul Morris/Bloomberg via Getty Images
The Tesla Motors Inc. Model X sport utility vehicle (SUV) is displayed during an event in Fremont, California, U.S., on Tuesday, Sept. 29, 2015. Elon Musk handed over the first six Model X SUVs to owners in California Tuesday night, as Tesla reached a milestone of having two all-electric vehicles in production at the same time. Photographer: David Paul Morris/Bloomberg via Getty Images
FREMONT, CA - SEPTEMBER 29: Tesla CEO Elon Musk steps out of the new Tesla Model X during an event to launch the company's new crossover SUV on September 29, 2015 in Fremont, California. After several production delays, Elon Mush officially launched the much anticipated Tesla Model X Crossover SUV. The (Photo by Justin Sullivan/Getty Images)
The second row seats of the Tesla Motors Inc. Model X sport utility vehicle (SUV) are seen during an event in Fremont, California, U.S., on Tuesday, Sept. 29, 2015. Elon Musk handed over the first six Model X SUVs to owners in California Tuesday night, as Tesla reached a milestone of having two all-electric vehicles in production at the same time. Photographer: David Paul Morris/Bloomberg via Getty Images
Tesla Model X sports utility vehicles (SUV) stand on the factory floor ahead of assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
An employee looks inside a Tesla Model X sports utility vehicle (SUV) following assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
A Tesla Model X sports utility vehicle (SUV) drives into a rain testing chamber during assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
Employees fit rear axles to Tesla Model X sports utility vehicles (SUV) as they sit in elevated cradles during assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
Tesla Model X sports utility vehicles (SUV) stand on hydraulic platforms during assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
A Tesla Model X sports utility vehicle (SUV) undergoes wheel alignment checks during assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
Electrical charging stations stand on the factory floor at the Tesla Motors Inc. electric automobile factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
A battery pack stands on a trolley as Tesla Model X sports utility vehicles (SUV) sit in cradles during assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
The rear gull wing doors of a Tesla Model X sports utility vehicle (SUV) sit open following assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
The rear gull wing doors of a Tesla Model X sports utility vehicle (SUV) sit open during assembly for the European market at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Friday, Dec. 9, 2016. A boom in electric vehicles made by the likes of Tesla could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd. Photographer: Jasper Juinen/Bloomberg via Getty Images
A Tesla Model X electric SUV is seen charging in Washington, DC, on December 20, 2016. / AFP / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
The interior information screen is seen on the dashboard of a Tesla Motors Inc. Model X P90D electric sport utility vehicle (SUV) at a Tesla Motors Inc. showroom in London, U.K., on Tuesday, Jan. 10, 2017. Tesla customers in the U.K. may find their Christmas cash goes a little further than expected after the U.S. electric-auto manufacturer's plans to raise prices 5 percent in the U.K. have been put off until Jan. 15 from the original beginning-of-the-year deadline. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
A Tesla Motors Inc. Model X P90D electric sport utility vehicle (SUV) stands on display at a Tesla Motors Inc. showroom in London, U.K., on Tuesday, Jan. 10, 2017. Tesla customers in the U.K. may find their Christmas cash goes a little further than expected after the U.S. electric-auto manufacturer's plans to raise prices 5 percent in the U.K. have been put off until Jan. 15 from the original beginning-of-the-year deadline. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
Tesla Inc. Model X P100D sports utility vehicles (SUV) sit on display at the company's new showroom in New York, U.S., on Thursday, Dec. 14, 2017. The Meatpacking District location, which opens to the public at 11 a.m. Friday, lets customers for the first time explore energy offerings, configure cars and place orders all under one roof. Photographer: Mark Kauzlarich/Bloomberg via Getty Images
A Tesla Inc. Model X P100D sports utility vehicle (SUV) sits on display at the company's new showroom in New York, U.S., on Thursday, Dec. 14, 2017. The Meatpacking District location, which opens to the public at 11 a.m. Friday, lets customers for the first time explore energy offerings, configure cars and place orders all under one roof. Photographer: Mark Kauzlarich/Bloomberg via Getty Images
The interior of a Tesla Inc. Model X P100D sports utility vehicle (SUV) is seen at the company's new showroom in New York, U.S., on Thursday, Dec. 14, 2017. The Meatpacking District location, which opens to the public at 11 a.m. Friday, lets customers for the first time explore energy offerings, configure cars and place orders all under one roof. Photographer: Mark Kauzlarich/Bloomberg via Getty Images
A Tesla Inc. Model X P100D sports utility vehicle (SUV), left, sits on display at the company's new showroom in New York, U.S., on Thursday, Dec. 14, 2017. The Meatpacking District location, which opens to the public at 11 a.m. Friday, lets customers for the first time explore energy offerings, configure cars and place orders all under one roof. Photographer: Mark Kauzlarich/Bloomberg via Getty Images
The front trunk space of a Tesla Inc. Model X P100D sports utility vehicle (SUV) is seen at the company's new showroom in New York, U.S., on Thursday, Dec. 14, 2017. The Meatpacking District location, which opens to the public at 11 a.m. Friday, lets customers for the first time explore energy offerings, configure cars and place orders all under one roof. Photographer: Mark Kauzlarich/Bloomberg via Getty Images
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Tesla's latest annual filing last December showed it had 37,543 full-time employees.

Up nearly 7 percent earlier on Tuesday, shares of the company trimmed gains to stand 3.5 percent higher at $344 by early afternoon. (Reporting by Laharee Chatterjee and Vibhuti Sharma in Bengaluru Editing by Saumyadeb Chakrabarty and Patrick Graham)

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