Reported by Bloomberg on Sunday (5/6/2022), Musk said that the layoffs would not apply to employees in the car and battery development section.
Total headcount will increase, but salaried should be fairly flat
According to the company’s annual report, about 39 percent of Tesla’s 100,000 employees are production staff.
As reported earlier, Musk is about to cut about 10 percent of employees because of a bad feeling about the economic outlook. Tesla, which has electric car factories in the United States, China and Germany, employs about 99,290 staff. A 10 percent reduction in employees means closer to 10,000 people.
The Austin, Texas-based company cut 7 percent of its workforce, or more than 3,000 people in early 2019. Elon had warned that there were big challenges in making electric cars more affordable, resulting in a reduction in employees.
After that, Tesla will increase its worldwide workforce by 40 percent by 2021. This is Tesla’s biggest expansion since 2014, when the automaker had more than 10,000 employees.
Meanwhile, Tesla shares fell more than 9 percent on Friday after news of the job cuts surfaced.
In addition to the issue of layoffs, Musk is also being highlighted for implementing a policy to return to work at the office or work from office (WFO). This decision became controversial because the richest man in the world asked employees to resign if they did not want to return to the WFO.
Elon reasoned that the higher a person’s position at Tesla, the more often that person should be seen in the office during working hours. He even mentions specifically that employees must be in the office at least 40 hours per week.
“That’s why I stay at the factory so often—so those on site can see me working with them. If I hadn’t done that, Tesla would have been broke long ago,” Elon wrote, quoted by Bloomberg on Friday (3/6/2022). .