Musk backtracks on plan to lay off 10% of Tesla employees

Musk confirmed that the number of hourly workers will increase in the company (AFP)

He said Elon Musk, The CEO of Tesla said that the total number of employees in the company that specializes in the electric car industry will increase during the next 12 months, but the number of employees who receive salaries will not see much change, down from what he said two days ago about the need to reduce ten percent of the Jobs.

And Musk added on Twitter, Saturday, that “the total number of employees will increase. But paid employees will remain unchanged significantly.” Musk was responding to a comment on a Twitter account, whose identity has not been verified, “speculating” that the number of Tesla employees will increase in the next 12 months.

The comment comes two days after Musk sent an email to company executives published by Archyde.com, in which he said he had a “very bad feeling” about the economy and should cut about 10 percent of the company’s jobs.

In another email to employees on Friday, Musk said that Tesla will cut the number of paid employees by 10%, as the company has become “overstaffed in many areas.” But, he said, “the number of hourly workers will rise.”

Tesla shares fell 9.2 percent at the close at the end of trading on Friday.

A disclosure provided by Tesla to US regulators showed that the company and its subsidiaries had nearly 100,000 employees at the end of 2021.

Ahead of his emails about staffing levels, Musk, in an email to Tesla employees on Wednesday, issued an ultimatum to return to the office for at least 40 hours a week. He wrote that failure to do so would be considered a resignation.

On the other hand, Musk said Thursday that Tesla’s AI Day has been pushed back to September 30, adding that a prototype of Optimus, a humanoid robot that is a priority for the company, may be ready by then and could be launched next year.

(Archyde.com)

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