When Tesla Inc (NASDAQ:TSLA) absorbed SolarCity late last year, an adjustment period including big layoffs was inevitable.
That’s simply the way things work in the M&A world: companies buy each other in order to reduce costs and improve efficiencies.
In that vein, Tesla said it’s laying off another 63 workers at a SolarCity office in Roseville, California. Business Insider has more details:
The move comes during Tesla’s continued integration with SolarCity, following the electric-car company’s multibillion-dollar acquisition of the solar-energy business late last year.
A total of 204 positions were being phased out at the Roseville facility. SolarCity announced a reduction of 141 positions there last month, according to documents the company filed with the California Employment Development Department.
With residential demand for solar installations expected to slow substantially this year, Tesla will likely continue to cut costs wherever possible. And With no one left to advocate for them, former SolarCity workers’ jobs are increasingly at risk. The co-founders of SolarCity, brothers Peter and Lyndon Rive, both left the company earlier this year. The Rives are cousins of Tesla CEO Elon Musk.
It’s a necessary evil to keep the cash-strapped company streamlined as much as possible, amid its ambitious goals to dominate the auto and energy markets, both of which are rapidly evolving as new technologies enter the landscape.
Tesla Inc shares rose $0.60 (+0.16%) in premarket trading Tuesday. Year-to-date, TSLA has gained 70.20%, versus a 12.52% rise in the benchmark S&P 500 index during the same period.