Elon Musk Tells Tesla Execs to Lay Off 10% of Employees
The future state of the world economy has Tesla CEO Elon Musk worried.
In an email sent to Tesla executives with a headline “pause all hiring worldwide”, Musk called for a 10% reduction of staff.
He notes that he believes certain areas are overstaffed and those exempt from the cut applies to, “anyone actually building cars, battery packs or installing solar.” He also notes that there will be an increase in employees being paid hourly salaries.
Tesla reported having employed approximately 100,000 people by the end of 2021. Recently, Musk received some backlash for his comments on employees working remotely, requiring them to either return to offices or leave the company.
Shares for the company dropped 4% on Thursday, June 2nd. In total, shares have dropped 26% so far in 2022.
Tesla has had a few other setbacks in 2022, including getting factories in Shanghai in the middle of COVID lockdowns, resulting in an estimated loss of 40,000 units.