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Musk backtracks on job cuts, says Tesla salaried staff to be 'fairly flat'

Published 06/04/2022, 05:38 PM
Updated 06/05/2022, 08:00 AM
© Reuters. FILE PHOTO: A Tesla service and sales center is shown in Vista, California, U.S., June 3, 2022.    REUTERS/Mike Blake/File Photo

© Reuters. FILE PHOTO: A Tesla service and sales center is shown in Vista, California, U.S., June 3, 2022. REUTERS/Mike Blake/File Photo

(Reuters) -Tesla Inc Chief Executive Elon Musk said on Saturday that the electric vehicle maker's total headcount will increase over the next 12 months, but the number of salaried staff should be little changed, backtracking from an email just two days ago saying that job cuts of 10% were needed.

"Total headcount will increase, but salaried should be fairly flat," Musk tweeted https://twitter.com/elonmusk/status/1533176789022957568 in a reply to an unverified Twitter (NYSE:TWTR) account that made a "prediction" that Tesla (NASDAQ:TSLA)'s headcount would increase over the next 12 months.

Musk in an email to Tesla executives on Thursday, which was seen by Reuters on Friday, said he has a "super bad feeling" about the U.S. economy and needed to cut jobs by about 10%.

In another email to employees on Friday, Musk said Tesla would reduce salaried headcount by 10%, as it has become "overstaffed in many areas." But "hourly headcount will increase," he said.

Tesla's shares sank 9.2% on Friday on the news.

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

© Reuters. FILE PHOTO: A Tesla service and sales center is shown in Vista, California, U.S., June 3, 2022.    REUTERS/Mike Blake/File Photo

Ahead of his emails on staffing levels, Musk on Wednesday in an email to Tesla employees issued an ultimatum to return to the office for a minimum of 40 hours a week. Failure to do so would be taken as a resignation, he wrote.

Musk on Thursday said Tesla's AI day has been pushed to Sept. 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

Latest comments

He can layoff whomever he wants to layoff. Big corps have been overloaded with white collar jobs for a long time. And, it's manufacturing that produces that produces something of profit that makes everybody their money. Business should be efficient and competition should abound. consolidation, merger, and failure leads to fewer jobs. fewer jobs lead to recession. recession is bad for everybody. people should think about the whole country prospering. it works better and is much more stable.
Didn't expect him to make statements and quickly back track, first with Twitter and now this
Didn't expect him to make statements and quickly back track, first with Twitter and now this
Sec should indict this fool
This is the kind of erratic decision making that comes with smoking pot.
Something worse than pot.
Dude’s entitled to his opinion. people need to hang less on his every word. Think for yourself!
Thinking for yourself is like taken the risk by yourself, invest with francois freeman
That's true the news blew it out of proportion. they are equally fools.
Elon had puts friday and calls for monday.. He is building capital for the Twitter purchase at the expense of shareholders..
And the SEC won't do a *******thing, and Elon knows it. They have no credibility left.
good thing I have calls for Monday too, knock on wood
spasmatic dont you think?
It's pretty clear he's manipulating the markets out of boredom. If only the SEC had any ***at all.. but they don't, so we can expect continued manipulation
🤡 printing options on every statement.
Economy goong down and stocks go down least 25%
musk like to joke
Got scared? -10% Friday?
Monday he will tweet, he meant hiring 10%
 more like the legal staff - said, shut up - your going to get hit by the SEC again
👍😅
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