Tesla CEO Elon Musk goes back on job cuts, says salaried staff to remain

After Tesla chief Elon Musk's recent announcement that Tesla will reduce one-tenth of its workforce soon, the CEO goes on to state that the number of workers will increase over the next 12 months, however, the number of salaried individuals will remain fairly flat. Musk tweeted, “Total headcount will increase, but salaried should be fairly flat."

File photo of Tesla CEO Elon Musk.
File photo of Tesla CEO Elon Musk.

The Tesla head recently stated that he had a bad feeling about the US economy and hence needed to cut jobs by 10 per cent. According to a Reuters report, in another email to employees on Friday, Musk mentioned Tesla also intended to reduce salaried headcount by 10 per cent saying the company has become overstaffed in many areas, though, the ‘hourly headcount will increase.’ Musk also stated previously, “The more senior you are, the more visible must be your presence. That is why I lived in the factory so much--so that those on the line could see me working alongside them. If I had not done that, Tesla would long ago have gone bankrupt."

Also Read : NHTSA receives more than 700 complaints of phantom braking in Tesla EVs )

Currently, Tesla employs around 99,290 workers around the globe. Apart from having two EV manufacturing facilities in the United States, Tesla also has an EV gigafactory in Shanghai, China and most recently in Berlin, Germany. A previous report stated that Tesla is also planning to build another gigafactory in Asia and is currently in talks with the Indonesian government.

Also Read : Elon Musk says Tesla likely to ready humanoid robot prototype within months )

Tesla is the largest electric vehicle manufacturer in the world. Last year, Tesla produced a record 9,30,422 electric vehicles despite facing ongoing supply chain issues and the semiconductor shortage. It also delivered about 9,36,222 units of electric vehicles.

First Published Date: 05 Jun 2022, 11:16 AM IST
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