Tesla Layoffs Impact Hourly Employees

Published on 23 Jun 2022

Tesla, Hourly Employees

According to a report from Electrek, hourly employees may be affected by a wave of layoffs at Tesla, despite Elon Musk's company-wide email on June 3 stating that "Tesla will be decreasing salaried personnel by 10 percent since we have gotten overstaffed in several areas." In response to a remark on Tesla's hiring over the next twelve months, Musk tweeted on June 4: "total headcount will expand, but salaries should remain stable."

The email was sent to explain the situation after initial reports of Musk informing business executives that the firm would need to slash employment by 10 percent globally and halt recruiting throughout the globe due to his "very poor feeling" about the economy. Tesla declined to comment; the corporation dismantled its public relations staff in 2019 and has not replied to media queries since.

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Elon Feels The Need To Be Financially Sound

In other Musk-related news, SpaceX dismissed a number of workers tied to a letter critical of Elon's actions, and in a Q&A session with Twitter employees, he hinted at probable layoffs when / if he completes his purchase; stating that the firm "needs to become financially sound."

According to Electrek's sources, Tesla has laid off salaried staff from its sales and delivery teams throughout North America. In addition to managing an end-of-quarter delivery surge, the corporation has just increased costs. This comes a day after Electrek claimed that inexperienced personnel from other areas, such as sales, had been reassigned to the service department to reduce the "next available appointment" window that car owners see when scheduling repairs.

The Decrease in Job Listings

According to Thinknum Alternative Data, Tesla job listings have decreased by 32 percent since May and 14 percent since Musk's first statement, as reported by Reuters yesterday. Reuters also talked with a former Tesla employee in Texas who had been paid on an hourly basis in Austin, Texas, for over a year and was informed that his position had been removed.


Featured image: Tesla


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