Electric vehicle firm Tesla has started the process to cut its team by 9 percent.
In an internal email, chief executive Elon Musk said the move was in part a matter of cutting redundant roles, but also acknowledged cash-flow issues.
Musk said that the cuts were part of a simplification of Tesla’s management structure promised last month.
“To be clear, Tesla will still continue to hire outstanding talent in critical roles as we move forward and there is still a significant need for additional production personnel,” Musk said in the letter. “I also want to emphasize that we are making this hard decision now so that we never have to do this again.”
The reorganization will mean Tesla shedding about 4,100 jobs.
The move will almost entirely involve salaried employees and comes as the carmaker races to hit production targets for its critical Model 3 sedan.