Tesla, Inc. (NASDAQ: TSLA), an electric carmaker who just cut 9% of its workforce last week, will be downsizing its solar business that it bought two years ago in a $2.6 billion deal, according to internal company documents and seven current and former Tesla employees in the solar department.
The cuts include closing over a dozen solar installation facilities and ending a retail partnership with Home Depot Inc, which employers said generated about half its sales. After the cuts, about 60 installation facilities remain with an internal company email that named 14 facilities expected to close, with another list including 13 of the locations. Tesla declined to comment on which sites they planned to shut down or how many employees were going to lose their jobs. The company said the cut to its energy team, including its batteries, came with the 9% staff cut.
The installation offices targeted for closure were located in New York, New Jersey, California, Maryland, Texas, New Hampshire, Connecticut, Arizona and Delaware. The company fired dozens of solar customer service staffers at call centers in Nevada and Utah from last week’s cuts. The employees spoke on anonymity to avoid violating the terms of their severance packages.
Tesla has been burning cash and making cuts trying to achieve production of 5,000 Model 3 sedans per week after production delays, while facing investor pressure to turn profits without Wall Street’s additional capital.