Tesla has announced that it will be cutting around 9% of its workforce as part of a restructuring move to reduce cost, Autocar reports. However, CEO Elon Musk insists that the move will not affect the company’s ability to meet the targeted Model 3 production goals.

Exactly how many employees is 9%? Well, Tesla supposedly had around 37,500 employees at the end of last year, with CNBC saying it has since added 8,000 more since the beginning of this year. That means about 4,000 jobs will be lost, but mostly for duplicate roles.

“Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today,” said Musk.

“As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company. These cuts were almost entirely made from our salaried population and no production associated were included, so this will not affect our ability to reach Model 3 production targets in the coming months,” he added.

Musk confirmed the job cuts on social media after an internal email became public. He also said the employees affected would be notified this week, and that Tesla is also continuing to streamline its management structure to “help us communicate better, eliminate bureaucracy and move faster.” The laid off employees would receive “significant” salary payments and stock in Tesla as compensation.

“We are a small company in one of the toughest and most competitive industries on Earth, where just staying alive, let alone growing, is a form of victory. Despite our tiny size, Tesla has already played a major role in moving the auto industry towards sustainable electric transport and moving the energy industry towards sustainable power generation and storage,” noted the billionaire.

Tesla was founded in 2003 and has yet to make a profit since. Just recently, Musk has made several bold claims, including announcing a rocket thruster package (SpaceX option) for the forthcoming Roadster.