He said Tesla's rapid growth in recent years contributed to the duplication of roles and creation of jobs that the company could no longer justify.
CEO Elon Musk said in an e-mail to workers Tuesday that the cuts amount to about 9 percent of the company's workforce of 40,000.
Elon Musk, Tesla's chairman, said on Twitter that the job cuts were "difficult, but necessary".
"As part of this effort, and the need to reduce costs and become profitable, we have made the hard decision to let go of approximately 9 percent of our colleagues across the company", Musk wrote".
The move will not affect factory workers as Tesla continues to ramp up production of its lower-priced Model 3 compact auto. Employees told the paper that they received "little or no warnings" before the firings, which reportedly targeted 400 to 700 employees, leading to "lowered morale through many departments".
Shares in the company rose as much as 7 percent on Tuesday, although they fell back to stand just 3 percent higher on the day after Musk's announcement. The company said the firings involved non-manufacturing positions and were unrelated to production delays involving the Model 3.
In May, Musk announced a "thorough reorganization" in a memo to employees. The delays and higher costs have put Tesla into risky territory where it is rapidly running out of cash and investors have become nervous about lending the company more money. Tesla has said it has begun small-scale production of the roofing panels in Buffalo, but has never detailed the scope of its activity or said how many workers it has on site. According to Bloomberg, this is the largest layoff in Tesla's 15-year history. "We will never achieve [our] mission unless we eventually demonstrate that we can be sustainably profitable", he wrote in the letter.
The Tesla-branded kiosks were created to educate consumers and ultimately generate sales of its residential rooftop solar panels and Powerwall, a battery it designed for homes that store the energy generated by solar panels.
"The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations", it said.
In October, Tesla fired "hundreds of workers" following annual performance reviews. In order to minimize the impact, Tesla is providing significant salary and stock vesting (proportionate to length of service) to those we are letting go.