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Musk withdraws on job cuts, says Tesla employees are “pretty flat”

June 4 (Reuters) – Tesla Inc (TSLA.O) CEO Elon Musk said Saturday that the electric carmaker’s total number of employees will increase over the next 12 months, but the number of salaried employees should be little changed, feedback from an email For just two days ago he said 10% cuts were needed.

“The total number of employees will increase, but the salary should be fairly flat,”[ads1]; Musk tweeted in a response to an unconfirmed Twitter account that gave a “prediction” that Tesla’s number of employees would increase over the next 12 months.

Musk said in an email to Tesla executives on Thursday, which was seen by Reuters on Friday, that he has a “super bad feeling” about the US economy and had to cut jobs by around 10%. read more

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In another email to employees on Friday, Musk said that Tesla would reduce employees by 10%, as it has been “overstaffed in many areas”. But “the number of hours will increase,” he said.

Tesla’s shares fell 9.2% on Friday in the news.

According to a US regulatory file from Tesla, the company and its subsidiaries had almost 100,000 employees by the end of 2021.

In advance of his emails about staffing levels, Musk issued an ultimatum in an email to Tesla employees on Wednesday to return to the office for a minimum of 40 hours a week. Failure to do so will be taken as a dismissal, he wrote. read more

Musk said Thursday that Tesla’s AI day has been postponed to September 30, and said that a prototype of Optimus, a humanoid robot that is a corporate priority, may be ready by then and may be launched next year. read more

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Reporting by Rachna Dhanrajani in Bengaluru; Edited by Leslie Adler

Our standards: Thomson Reuters Trust Principles.

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