In a mail to employees, Elon Musk, CEO, Tesla Motors, has conveyed the need to cut 10 per cent of the jobs, as the Company is overstaffed in certain areas.
Musk has further clarified that the salaried staff will be affected and that those engaged in building cars, battery packs and solar installing will not be impacted by this job cut.
In another mail, Musk mentioned that the Company will pause all hiring activity across the Company. However, hourly workers will continue to be hired.
In the mail, Musk shares his apprehensions about the condition of the economy, and that the hiring pause is a step required to maintain stability this situation.
The Tesla CEO has been making headlines ever since he announced his intention to take over Twitter. The employees at Twitter have been rather sceptical about their future in the company, as they foresee some layoffs post Musk’s takeover.
Also, Musk has given an ultimatum to all employees regarding working from the office. He has made it clear that those who do not wish to return to office may leave.
As per global news, Tesla saw a slump in its share price by nine per cent in the US trade market on 03 June, 2022. Also, the company has been finding it really difficult to restart its production at Shanghai due to lockdown caused by COVID-19.
In 2021, Tesla employed 100,000 employees worldwide.