Elon Musk

Tesla's Headcount Will Be Higher Long Run, but Job Cuts of 3-3.5% Are Needed Now to Optimize, Says Elon Musk

Tesla's Headcount Will Be Higher Long Run, but Job Cuts of 3-3.5% Are Needed Now to Optimize, Says Elon Musk

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Tesla's headcount of both salaried and hourly workers will be higher one year from now, Elon Musk said. Job cuts, which represent about 3-3.5%, will be held in the next few months to optimize the company, in the face of the US recession.

Tesla CEO Elon Musk was interviewed by Bloomberg News Editor-in-Chief John Micklethwait at the Qatar Economic Forum 2022. Among various provocative questions, Tesla's CEO spoke about the company's job cuts and its plans for the future.

As in everything, the topic of layoffs at Tesla is on the front pages. While other companies are doing the same in this regard, you probably won't read this in any major publication. Obviously, the word Tesla works like a “capote” for a bull. That is why Musk had to answer a question that had already been clarified by him more than once.

The head of Tesla explained that the company was growing very fast in terms of wages, so some changes were needed in the face of the difficult economic situation. While now is the time to make some optimizations to make sure the company can handle it, the overall picture for Tesla remains positive. Musk said job cuts will take place over the next three months or so and will reach 3-3.5% overall. However, he thinks that a year from now the headcount will be higher for both salaried and hourly workers.

“A year from now I think our headcount will be higher in both salaried and obviously in hourly, but in the short term of the next few months, we expect to see roughly a 10% reduction in salaried workforce which is actually just really only a 3-3.5% reduction in total headcount.”

As Musk previously explained, layoffs will not affect workers who are employed in manufacturing. Obviously, high-class specialists who work selflessly and fully cope with their duties will also retain their jobs.

© 2022, Eva Fox | Tesmanian. All rights reserved.


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About the Author

Eva Fox

Eva Fox

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.

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