Tesla is cutting 10% of salaried workers, as per the CEO Elon Musk. To affirm his purpose, Musk wrote in an email to all employees working in his outfit on Friday June 3.
As indicated by the email, the organization will cut 10% of salaried workers and will rather depend on additional hourly laborers.
Shares of Tesla plunged 9% on Friday June 3 by midmorning after it was accounted for on a previous email Musk had shipped off to executives about his plans to cut the organization’s labor force and communicating a genuinely bad feeling about the economy.
In its year-end financial filing, Tesla said it employed 99,290 people all over the world as of the end of 2021.
Meanwhile, American President Joe Biden was asked about Musk’s negative monetary outlook after news of Tesla’s head count was all over the place.
Biden said that while Musk is talking about economic fears and reductions, Ford is increasing its investment in building new electric vehicles, with 6,000 new, union employees in the Midwest.
The president additionally praised the former Chrysler Corp., Stellantis, for making comparable interests in electric vehicle manufacturing in the U.S. and Intel for adding 20,000 new jobs in microchip manufacturing.
Here is the new email Musk sent to all Tesla workers:
Subject: Headcount Reduction
Date: Friday, June 3, 2022
Tesla will be reducing salaried headcount by 10% as we have become overstaffed in many areas. Note this does not apply to anyone actually building cars, battery packs or installing solar. Hourly headcount will increase.
Tesla has now over 100,000 employees worldwide, and it had over 5,000 open positions prior to the layoff announcement. Many of the open roles are at Tesla’s growing factories, especially Gigafactory Berlin and Texas.