According to Musk, Tesla should cut 10 percent of its employees worldwide

Elon Musk confirmed that Tesla’s workforce would be reduced by about 10 percent over the next three months, but said the overall reduction in the electric carmaker’s workforce would only be about 3.5 percent as the number of hourly employees is expected to increase will continue to rise.

We’ve grown very quickly on the salary side,” Mr Musk said in an interview with the Qatar Economic Forum on Tuesday.

“In a year, I think our headcount will be higher,” he said, in white-collar and hourly workers, but right now the reduction will be 3 percent to 3.5 percent.

The comments brought more clarity to the Tesla staffing situation after Mr Musk made various internal and public statements about cuts over the past month.

Tesla, which is now headquartered in Austin, Texas, has grown to about 100,000 employees worldwide and is rapidly hiring as it builds new factories in Austin and Berlin. The cuts, which have affected staff representatives and software developers, took many by surprise, as several employees were told they would be fired immediately.

Two workers at Tesla’s battery factory near Reno, Nevada, allege the company failed to comply with the 60-day reporting requirement under the Worker Adjustment and Retraining Notification Act, according to a lawsuit they filed in federal court in Austin late Sunday have submitted.

“Let’s not read too much into a preventive lawsuit that doesn’t stand,” Mr Musk said via video link.

Mr Musk plunged into the work-from-home debate earlier this month, giving Tesla employees an ultimatum to return to the office or leave. According to Musk, Tesla should cut 10 percent of its employees worldwide

Fry Electronics Team

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