Tesla to lay off 10 percent employees, Elon Musk confirms

Elon Musk has claimed that Tesla will be reducing the overall headcount of its employees. The company chief claimed that the electric car maker will reduce the workforce by 10 percent within the period of three months. This comes days after a report cited Musk’s letter to employees claiming that 10 percent of employees will be laid off.

Tesla won’t stop at headcount reduction. During the Qatar Economic Forum organized by Bloomberg, Musk claimed that the company will also be deducting salaries by 10 percent in the next three months. This is the company’s way of dealing with the global economic slowdown.

While 10 percent of the employees will be laid off, Musk claimed that there will be a reduction of only 3.5 percent in the overall headcount of the company. Musk explained this by saying that while they will be firing salaried employees, the hourly workers hiring will continue to grow.

Musk has been of the opinion that within a year, the headcount of the company will be higher than the current levels. The company has been increasing workers across the globe. By the end of 2021, Tesla had managed to get to a total headcount of 1,00,000 employees. Last year, Tesla increased its workforce by almost 40 percent.

Tesla CEO Elon Musk has been a strong supporter of work from office model. In fact, he issued an ultimatum to his employees saying that if they don’t come to the office, they will have to quit. In an email titled, “To be super clear,” he said, “Everyone at Tesla is required to spend a minimum of 40 hours in the office per week…Moreover, the office must be where your actual colleagues are located, not some remote pseudo office. If you don’t show up, we will assume you have resigned.”

Two employees have filed a case against Tesla CEO, Elon Musk for laying them off with insufficient notice. The employees have claimed that the mass layoffs have begun and it has violated the federal law of US.

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