Musk backtracks on job cuts, says Tesla’s salaried workforce is ‘pretty flat’

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June 4 (Reuters) – Tesla Inc (TSLA.O) Chief Executive Elon Musk said on Saturday that the electric vehicle maker’s total workforce would increase over the next 12 months, but the number of employees was not expected to increase. little change, going back to an email just two days ago saying 10% job cuts were needed.

“Total headcount will grow, but employees should be pretty steady,” Musk tweeted in a response to an unverified Twitter account that made a “prediction” that Tesla’s headcount would grow over the next 12 months.

Musk, in an email to Tesla executives on Thursday, which was seen by Reuters on Friday, said he had a “super bad feeling” about the U.S. economy and needed to cut jobs from around 10%. Read more

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In another email to employees on Friday, Musk said Tesla would cut the salaried workforce by 10% because it has become “overstaffed in many areas.” But “the hourly workforce will increase,” he said.

Tesla shares fell 9.2% on Friday on the news.

According to a U.S. regulatory filing from Tesla, the company and its subsidiaries had nearly 100,000 employees at the end of 2021.

Ahead of his workforce emails, Musk on Wednesday issued an ultimatum to Tesla employees to return to the office for at least 40 hours a week. Failure to do so would be considered a resignation, he wrote. Read more

Musk said Thursday that Tesla’s AI Day had been pushed back to September 30 and said a prototype of Optimus, a humanoid robot that is a company priority, could be ready by then and could be launched next year

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Reporting by Rachna Dhanrajani in Bengaluru; Editing by Leslie Adler

Our standards: The Thomson Reuters Trust Principles.

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