Tesla Inc. (TSLA) may just be rearranging the deck chairs.
CEO Elon Musk addressed the company Monday, May 14, telling employees that the electric automaker will undergo a restructuring to flatten its management structure, The Wall Street Journal reported Monday.
Tesla shares were down 0.3% on Monday morning. The stock has shed 7.5% over the past 12 months.
The announcement followed news that engineering chief Doug Field is taking a leave of absence, while senior executive Matthew Schwall is leaving the company for Alphabet Inc.'s (GOOGL) self-driving division Waymo.
"To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company," Musk said in the memo reviewed by the Journal. "As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission."
Musk had alluded to reorganization efforts earlier this month, but those statements were centered around the company's decision to cut down on contracted workers.