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Tesla to cut around 3,000 jobs in order to make products more affordable
by Paul Hill
Tesla has announced that it’s planning to cut 7% of its workforce, possibly around 3,000 workers, in order to better compete against more established players in the market. According to the firm, it grew by 30% last year which is more than it can currently support and it will therefore “retain only the most critical temps and contractors.”
In the announcement, Elon Musk, CEO of Tesla, said:
The move comes hot on the heels of an announcement by SpaceX last week that it, too, would be laying off 10% of its workforce, or roughly 600 people - a much smaller scaling back than the one about to take place at Tesla.
Going forward, Tesla is looking to produce a more affordable variant of its Model 3. It was pointed out that the cheapest model costs $44,000 which is outside the price range for many potential customers. Musk also cited a reduction in Tesla's U.S. tax credit which would further increase the price of its cars, making the firm’s situation more difficult.
It’s not clear what assistance those being sacked will get. Those laid off from SpaceX last week have been given two months pay as well as career coaching, resume help, and help with job searches to get them back into work.
By the better twin
Wow. End of an era. I've never known a Manchester United without him. Emotional news.
Start the rumor mill to who will replace him.
By +Frank B.
Manchester United seeks $100m New York stock sale
Manchester United has applied to list on the US stock market in a share sale aimed at raising $100m (?64m).
In documents filed with the Securities and Exchange Commission, the Premier League giant said it was listing on the New York Stock Exchange.
The club had earlier explored the possibility of a $1bn flotation on the Singapore stock market.
United, among the best-supported clubs in the world, said it would use money from the listing to repay debt.
The club has been controlled since 2005 by the Glazer family, the billionaire US sports investors who also own the Tampa Bay Buccaneers American football franchise.
The Glazers borrowed large sums of money to buy the club and the interest payments on this debt are onerous.
In 2010, the owners converted these loans into a bond in order to reduce the interest, but analysts say the share sale demonstrates how the club remains weighed down by its heavy debts, despite its huge global fan base and promotional and marketing efforts.
The club currently owes ?423m.
"We intend to use all of our net proceeds from this offering to reduce our indebtedness," the prospectus filed with the SEC said.
The club will issue two categories of share to ensure that the Glazer family remains in control.
The $100m figure in the IPO paperwork is what is known as a "placeholder" figure, and it is envisaged that the club will want to raise significantly more than this sum.
In September, United received approval for a share sale in Singapore, but the process was delayed because of volatility in the stock markets.
Several high-profile flotations have been pulled in recent months as investor appetite has been dampened by the European debt crisis and worries that Asian economies are slowing.
Source: BBC News