Tesla defied the job-cut trend among tech firms in 2022. Unlike Google, Meta, Microsoft, and Twitter, which laid off substantial numbers of employees to cut costs amid an impending economic downturn, Tesla hired nearly 29,000 new workers, a 22% increase from the previous year.
Though Tesla did go through a round of layoffs, it mainly impacted corporate and remote positions that were deemed redundant. The company stated its intention to reduce salaried headcount by 10% while increasing the number of hourly workers in its manufacturing sector.
Last year, Elon Musk, the CEO of Tesla, sent an email to employees announcing that 10% of salaried positions would be cut, excluding those involved in car manufacturing, battery production, and solar installation. He also pledged to boost the number of hourly workers.
However, later on, he revised the estimate and stated that there would only be a 3-3.5% reduction in the total headcount. Despite the job cuts, Tesla actually hired more employees in the past year compared to those let go. According to a recent 10-K SEC form, Tesla reported a total of 127,855 full-time employees globally, a remarkable increase of 28,565 from the previous year, as reported by Teslarati.
“Our greatest asset is our people and we continue to attract the best and brightest with our competitive pay and benefits package which starts with ownership. We offer employees the opportunity to receive equity during their employment and share in the success of Tesla. As of December 31, 2022, our full-time count for our and our subsidiaries’ employees worldwide was 127,855, a 29,000 year-over-year increase.”
Tesla’s workforce has seen a significant expansion, reaching 99,290 employees by the end of 2021, compared to 70,757 in 2020. This growth highlights the automaker’s expanding ventures in both the automotive and energy industries.
As Tesla’s main focus is manufacturing, the company is constantly hiring to meet the rising demand for its vehicles. The automaker delivered 1.3 million cars in 2021 and aims to deliver at least 1.8 million in 2023, requiring a continual increase in production.
To keep up with this increased output, Tesla will need to add even more workers to its workforce. The company’s Gigafactories are its largest sources of employment, with the Giga Texas facility expected to see the greatest headcount growth in the near future. CEO Elon Musk has hinted that the Austin plant, which also serves as Tesla’s global headquarters, could eventually employ up to 20,000 people.
