Elon Musk Tells Tesla Staff Only Salaried Jobs to Be Cut: Report
2022.06.03 20:36
© Bloomberg. Elon Musk, founder of SpaceX and chief executive officer of Tesla Inc., speaks during a discussion at the Satellite 2020 Conference in Washington, D.C., U.S., on Monday, March 9, 2020. The event comprises important topics facing both satellite industry and end-users, and brings together a diverse group of thought leaders to share their knowledge. Photographer: Andrew Harrer/Bloomberg
(Bloomberg) — Elon Musk told Tesla (NASDAQ:TSLA) Inc. employees that plans to cut 10% of jobs would only apply to salaried workers, according to Electrek, clarifying an earlier report that he had broadly discussed a layoff without specifics.
The chief executive officer said in an internal email that headcount would be reduced because Tesla has “become overstaffed in many areas,” the auto-focused news website reported. Musk said in the same note that the hourly employee workforce would be expanded, Electrek said.
The comments came several hours after Reuters reported that Musk told company executives he would reduce Tesla staff because he had a “super bad feeling” about the economy. The news sent Tesla’s shares down as much as 9.4% in New York trading.
Read more: Tesla Pauses Hiring as Musk Aims for 10% Staff Cut, Reuters Says
Tesla said in its annual report that about 39% of roughly 100,000 workers were “production line employees.”
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