Tesla reduces workforce
Electric car maker Tesla Inc. is laying off about 3,600 workers mainly from its salaried ranks as it slashes costs in an effort to deliver on CEO Elon Musk’s promise to turn a profit in the second half of the year.
In an email to workers on Tuesday, Musk said the cuts amount to about 9 percent of the company’s workforce of 40,000.
Tesla would not say how much money the layoffs would save, but said no factory workers would be affected as the company continues to ramp up production of its lower-priced Model 3 compact car.
The move is part of an organizational restructuring that Musk announced earlier in the year.
Tesla has not made an annual profit in its 15 years of doing business, and it has posted only two quarterly net profits.
CBRE acquires Ohio company
A Columbus-based business-to-business tech company has been bought by commercial real estate giant CBRE for $290 million in cash.
FacilitySource employs about 550, including 380 at its Columbus operations center, 200 E. Campus View Blvd.; the others are at a back-office support center in Phoenix.
FacilitySource develops software used by commercial real estate landlords. CBRE said it plans to use FacilitySource’s products to help build a technology-enabled supply chain that can aid operations of major tenants.
CBRE, which has a downtown Columbus office, bought the company from private-equity firm Warburg Pincus.
According to FacilitySource’s website, its clients include Walmart, Target, Macy’s and Starbucks.
— Columbus Dispatch
GateHouse Media Ohio
FERC disputes Trump claim
Federal regulators on Tuesday disputed the Trump administration’s claim that struggles facing the coal and nuclear industries threaten the reliability of the nation’s power grid.
“There is no immediate calamity or threat,” the Republican chairman of the Federal Energy Regulatory Commission told Congress. Existing power sources are sufficient to satisfy the nation’s energy needs, FERC Chairman Kevin McIntyre added.
Four other commissioners from both parties agreed there is no immediate threat to the grid. The comments before the Senate Energy and Natural Resources Committee contradict a recent White House directive ordering action to keep coal-fired and nuclear power plants open as a matter of national and economic security.
The commissioners cited a recent report by a regional transmission organization that oversees the grid in 13 states (including Ohio) and the District of Columbia declaring there’s no need for drastic action to protect the grid. “There is no immediate threat to system reliability,” Pennsylvania-based PJM Interconnection said in response to Trump’s directive. The organization oversees the grid in a region that stretches from Illinois to Virginia, including several states where coal-fired power is a major source of electricity.
Two nominees move forward
The Senate Banking Committee on Tuesday approved President Donald Trump’s nomination of Columbia University professor Richard Clarida to be the vice chairman of the Federal Reserve. The panel also approved the nomination of Kansas bank commissioner Michelle Bowman to fill another vacancy on the Fed’s seven-member board.
If the nominations win approval as expected from the full Senate, they will fill two of the current four vacancies on the Fed board. Trump has the opportunity to remake the Fed board in his first two years in office by filling six of seven positions.
Clarida, an expert on monetary policy, would succeed Stanley Fischer in the Fed’s No. 2 job. Bowman, the first woman to be the top banking regulator in Kansas, would take the board seat reserved for a community banker. The committee approved Clarida’s nomination on a 20-5 vote while Bowman was approved by a vote of 18-7. All the no votes were cast by Democrats.
Compiled from staff and wire reports.
Business news briefs, June 13: