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Tesla To Reduce Salaried Workforce By 10% Over 3 Months: Elon Musk

elonmusktesla jun21 lt

Luxury electric car maker Tesla Inc. will reduce its salaried workforce by around 10% over the next three months, Reuters reported quoting Chief Executive Officer Elon Musk.

Speaking at the Qatar Economic Forum organized by Bloomberg, Musk noted that the planned cuts would amount to about a 3.5% reduction in total headcount at the company.

As per recent filing, the company has employed around 100,000 people at the end of 2021.

In early June, Bloomberg had reported that the founder and CEO wanted to pause all hiring worldwide, and that the company was planning to cut about 10 percent of salaried jobs as it has become overstaffed in some areas. The company would expand hourly workforce, according to internal email.

Tesla had previously stated that its own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022.

The company recently had asked its employees to stop working from home and to return to office or else quit. Like many other major companies, Tesla had allowed its employees to work remotely after the COVID-19 pandemic hit in 2020. As per leaked emails, Musk urged employees to be in the office for a minimum of 40 hours per week or depart Tesla.

According to him, the office must be the employee's primary workplace where the other workers they regularly interact with are based, not a remote branch office unrelated to the job duties.

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