Tesla chief executive Elon Musk seems to have backtracked on plans to lay off 10 percent of the automaker.
In an email sent to employees on Thursday last week, Musk said he had a “very bad feeling” about the economy and that Tesla planned to lay off one in 10 of its 100,000 employees. He instructed Tesla executives to “suspend all recruitment worldwide.”
Fast forward a few days and Musk has changed his tune. When a Twitter follower suggested that Tesla’s total headcount increase over the next 12 months, Musk said that yes, the company would increase its workforce. [employee numbers] It should be fairly flat. “
Read more: Elon Musk wants to shut down 10% Tesla workforce, has “extremely bad feelings” about the economy
Musk followed up on his original email on Friday where he said Tesla would cut its paid headcount by 10 per cent, noting that it had become “extra staff in many cases”. He then said that the car manufacturer’s “hourly headcount” would increase.
The total headcount will increase, but the payroll should be fairly flat
– Elon Musk (lonelonmusk) June 4, 2022
The past week has proved to be quite an uncertain one for many Tesla workers. Musk starts the week by telling all employees that they will no longer be able to work remotely, return to the office, and spend at least 40 years each week in the office. He said those who failed to comply would be considered to have resigned.
Many industry observers believe that the mask was announced as a way to cut jobs, knowing that many employees would not want to return to the office, which means Tesla could avoid dismissing them and providing them with redundancy packages. It has also been reported that Tesla does not have adequate desk space or parking space in its facilities to accommodate all employees.