Tesla is streamlining its operations by regulating the hiring and layoffs of employees, as well as the size of their wages. In a situation of economic instability in the United States, the manufacturer must take the necessary steps to maintain a positive cash flow.
Tesla CEO Elon Musk said on Twitter on Saturday that the company's total headcount will increase over the next 12 months. He noted that the salaried worker count should remain “fairly flat.” This is quite logical, as the company has opened two new factories that are looking to increase their productivity as quickly as possible, so it needs thousands of new employees.
Total headcount will increase, but salaried should be fairly flat— Elon Musk (@elonmusk) June 4, 2022
Speculation that Tesla will cut the headcount by 10% appeared due to a distorted (accidentally or deliberately) interpreted email Musk sent to employees of the company. While the email did contain information that some employees would be made redundant, it was very clear that the overall headcount of the company would grow.
Musk wrote that the staff will be cut in “overstaffed” areas. Obviously, Tesla has clear priorities today and does not want to support those operations that do not benefit at the moment. Musk stressed that the reduction will not affect those workers who are employed in manufacturing, such as producing cars and batteries. It also does not affect those who install solar. Tesla's CEO wrote in no uncertain terms that the company's hourly headcount would increase, confirming his statement later publicly on Twitter.
“Tesla will be reducing salaried headcount by 10%, as we have become overstaffed in many areas.
Note, this does not apply to anyone actually building cars, battery packs or installing solar.
Hourly headcount will increase.
Although journalists of various well-known media continue to manipulate information by creating clickbait headlines, the reality turns out to be completely different. Timely optimization of the company is a very important step that will allow the manufacturer to continue to develop qualitatively in a given direction and maintain a positive cash flow without spending where it is not needed.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.