Jun 3, 2022 - Economy

Report: Elon Musk wants Tesla to cut 10% of jobs

CEO of Tesla Motors Elon Musk speaks at the Tesla Giga Texas manufacturing "Cyber Rodeo" grand opening party on April 7, 2022 in Austin, Texas

Tesla CEO Elon Musk speaks at a Tesla Giga Texas manufacturing opening party on April 7 in Austin, Texas. Photo: Suzanne Cordeiro/AFP via Getty Images

Tesla CEO Elon Musk said he is prepared to cut staff by about 10%, citing a "super bad feeling" about the economy, according to an internal email seen by Reuters.

Driving the news: Musk's email, titled "pause all hiring worldwide," was sent Thursday to Tesla executives, two days after he said that staff will be required to return to work in person.

  • Musk in a separate email to staff on Friday said that the salaried headcount will be cut by 10%, citing the company becoming "overstaffed in many areas," per Reuters.
  • "Note, this does not apply to anyone actually building cars, battery packs or installing solar," he said, also noting that "hourly headcount will increase."

The big picture: Musk told Tesla staff this week that employees "should pretend to work somewhere else" if they're not willing to return to their offices.

  • "Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla," he said.

By the numbers: Tesla shares fell 8.5% on Friday after news of the hiring freeze emerged, CNBC reports.

  • Tesla and its subsidiaries employed nearly 100,000 people at the end of 2021, per Reuters.
  • Representatives for Tesla could not immediately be reached for comment.

Go deeper: Musk's WFH warning amplifies threat level for workers

Editor's note: This story has been updated with information on Elon Musk's email sent to staff on Friday.

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