Electric car maker Tesla Inc. plans to close a dozen solar facilities in nine states, according to Reuter’s, which cites internal documents. The cuts to what was the company’s SolarCity division, also ends a retail deal with Home Depot that accounted for about half its sales.
The move follows Tesla’s decision to cut 9 percent of its 40,000 workforce last week.
Citing three internal company documents and seven current and former Tesla employees, Reuters reports 14 facilities would close. The solar installation offices targeted are in California, Maryland, New Jersey, Texas, New York, New Hampshire, Connecticut, Arizona and Delaware, according to an internal email.
An unnamed source also told Reuters that that Tesla fired dozens of solar customer service staffers at call centers in Utah and Nevada.
SolarCity, which Tesla bought for $2.6 billion two years ago, employed about 15,000 at the end of 2015 but cut thousands of workers since. The company was founded by two cousins of Tesla CEO Elon Musk.
SolarCity sales dropped significantly in the quarterly results Tesla reported in February.
Tesla plans to absorb SolarCity into its brand and sell it through 90 of its 109 U.S. retail stores, according to its web site.
For more see:
Tesla cuts 9% of workforce in bid to post a profit; stock rallying 40% from April low
