Elon Musk, CEO of Tesla, said in an email to all employees on Friday that the company would cut 10% of salaried employees and rely on more hourly workers instead. Musk said in the email that Tesla will lay off staff due to the overstaffing in many fields. He also said that the layoffs do not apply to employees who produce cars or battery packs, and the number of hourly workers will increase.
Access:
This email seems to clarify Musk's position. Earlier, foreign media reported that musk told executives that he would cut 10% of Tesla employees because he had a "super bad feeling" about the economic situation, which meant that nearly 10000 people would lose their jobs. The news caused Tesla's share price to plunge 9.2% on Friday, the biggest drop since the end of April.
Tesla said in its annual report that about 39% of the company's approximately 100000 employees are "production line employees". Although it is not clear whether Tesla will cut staff in an all-round way, Musk's pessimistic comments mark a change in the tone of the electric vehicle manufacturer. Tesla recently opened two automobile factories and set a global sales record in the last quarter. Musk expects a "much higher" growth later this year.
The following is the full text of Musk's email:
To: owner
Subject: layoffs
Tesla will cut 10% of its salaried employees because we have been overstaffed in many areas. Note that this does not apply to anyone who is actually manufacturing cars, battery packs or installing solar energy. The number of hourly workers will increase.
Elon