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Elon Musk confirms upcoming Tesla (TSLA) salaried workforce cuts

Following up on an email suggesting a cut of 10 percent of the salaried workforce, Musk has seemingly confirmed plans to balance salaried and hourly workers.

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It would appear that Tesla’s workforce is about to go through a major shakeup. We’ve previously heard rumblings about the possible change to the workforce as Musk shared concerns about the US economy. Now it seems those rumblings are confirmed. At a recent economic forum, Musk confirmed Tesla would likely be cutting around 10 percent of its salaried workforce to balance its staff more in favor of hourly workers. This comes alongside Musk’s concerns of a US recession becoming more and more likely.

Musk confirmed and detailed plans at Tesla to cut some of the workforce at the Qatar Economic Forum organised by Bloomberg, as reported by Reuters. This report follows on a previously leaked email from Elon Musk that shared the CEO’s plans for cutting a major portion of Tesla’s workforce. According to Musk, the layoffs will be coming in the months ahead and aim to reduce Tesla’s salaried workforce by 10 percent, reducing the overall workforce by 3.5 percent. Musk cited concerns for a US economic recession as the main reason for this cut.

“It's not a certainty, but it appears more likely than not,” Musk said of the matter.

Despite warnings of upcoming layoffs, Tesla (TSLA) stock is up coming into this Tuesday afternoon.
Despite warnings of upcoming layoffs, Tesla (TSLA) stock is up coming into this Tuesday afternoon.

Elon Musk has teasing a number of cuts for a while now, not just at Tesla, but also as finalization of his deal to buy Twitter looms. In particular, Musk has cracked down and voiced his dissent against remote work, previously stating that Tesla remote workers should “pretend to work somewhere else.” Elon Musk has extended this sentiment to Twitter, further sharing that he feels the social media company needs layoffs in order to balance spending versus revenue and help the company “get healthy.”

It would appear that major upcoming Tesla layoffs are all but certain at this point. With that in mind, it will remain to be seen how the Tesla workforce balances out over the months ahead. Stay tuned for more updates here at Shacknews.

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

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