Tesla lays off more employees despite Elon Musk’s comments

Tesla (TSLA) lays off more employees, and hourly ones this time despite Elon Musk’s comments

Electrek.co by Fred Lambert

[{"selector":"#anim-b63dcf59-c087-45bc-bbca-6004426060d6","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Tesla has started another wave of layoffs, and this time it also includes hourly workers instead of just salaried employees like CEO Elon Musk claimed.

[{"selector":"#anim-b7e636ee-97a9-4ba5-bd05-0ebac03f58c1","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Earlier this month, we reported on Musk telling Tesla executives in an email that they need to cut 10% of the workforce and pause hiring due to having a “super bad feeling” about the economy.

[{"selector":"#anim-09527ab0-45b0-48f3-af5a-b28bc2e172a8","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Later, the CEO has decided to clarify the Tesla layoffs in an email to all employees. He claimed that the 10% reduction would be for “salaried headcount” due to Tesla becoming overstaffed following a long growth phase.

[{"selector":"#anim-1e26f400-b238-49b1-abba-001d341060c4","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] He even stated that “hourly headcount will increase.”

[{"selector":"#anim-67267613-b4aa-4e03-919f-a493ce4b193b","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] However, we can now confirm that Tesla is also laying off hourly workers across its organization.

[{"selector":"#anim-39a6cf69-99da-4b05-a79e-9a3864f77d75","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Sources familiar with the matter confirmed to Electrek that Tesla started another wave of layoffs yesterday that included many salaried employees in its sales and delivery teams across North America.

[{"selector":"#anim-a26046a9-08f8-414e-8402-8c20d9a06101","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Surprisingly, the layoffs come amid Tesla’s being in the middle of a difficult end-of-quarter delivery wave, which Musk himself warned employees about – saying that it will be “nutty.”

[{"selector":"#anim-f2f1a14b-69cf-4202-9401-756980cc3bec","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] After Gigafactory Shanghai was shut down for a significant part of the quarter, the automaker finds itself having to deliver more vehicles at the end of the quarter in order to compensate.

[{"selector":"#anim-5b70a935-0219-4aae-a05b-950af1f5df50","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more about Tesla's plans to lay off more employees and read Electrek's Take at Electrek.co. Read Electrek's Take