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Elon Musk To Cut 10% Of Tesla Staff

Jun. 05, 2022 9:24 AM ET by Chris Teague Electric Vehicles / 11 Comments The email came one day after Musk implemented a global hiring freeze. We probably shouldn't be surprised by now, but yet another major employee-related revelation came from Tesla CEO Elon Musk this week. No, he's not buying another social media company. Reuters uncovered an email from the controversial leader to his executive team outlining the need to pause all hiring activities worldwide. Though his promises sometimes sound a little outlandish, these statements carry weight. Musk sent that email on Thursday, just two days after laying down an ultimatum for people to return to the office or quit. A follow up email on Friday stated that Tesla needed to slash its workforce by about 10%, saying that the automaker had become overstaffed. At the same time, he noted that hourly headcount would increase, meaning the company needs more people to build the cars. Tesla Tesla Tesla Tesla currently has a waiting list that extends to a year or longer for some models, though the automaker is willing to move its timetable forward for people willing to pay for more expensive variants of certain cars like the ultra-popular Model Y. To be fair to Tesla, it's got plenty of company, as many automakers have extended wait times for popular models right now. Musk has had a busy week, as he demanded a return to the office for remote employees. "Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla," his memo stated. He went on to note that the office must be the location where the employee's primary responsibilities are located, and said that his demand of 40 onsite hours was less than what is asked of Tesla's factory workers. Carbuzz Tesla Say what you will about Musk, but it's clear that, as the head of a global automaker, he has his finger on the pulse of the world economy. Morgan Stanley agrees as analyst Adam Jonas stated that "Elon Musk has a uniquely informed insight into the global economy. We believe that a message from him would carry high credibility." Musk believes an economic storm is brewing. Inflation, war, and other issues may be leading us down the path toward a recession, so his actions are likely an attempt to preempt any blows Tesla may take as a result. Some speculated that Musk's remote work email was a way to cut the workforce without having to fire anyone, but Thursday's and Friday's emails shut down that line of thinking. Unsurprisingly, Tesla's stock tumbled on these revelations, falling 9% after the Reuters story landed. If only used Tesla sales counted into the stock price equation, because the automaker's cars are selling for hefty markups. Tesla Tesla Tesla Source Credits: Reuters

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