Tesla to Cut 10% of Salaried Staff, Increase Hourly Workers, Says Musk Email

As electric vehicle (EV) maker Tesla continues to grow, layoffs are to be expected, with a new round of layoffs set to begin as seen in a new email.

Tesla CEO Elon Musk emailed employees to announce that the automaker will be performing layoffs, saying that the company has become “overstaffed” in many areas, according to a screenshot of the email shared on Friday, shared by @WholeMarsBlog.

Musk said that the move won’t affect those directly working on building cars, battery packs or solar, and that hourly headcount will increase while salaried headcount decreases.

In the email, Musk wrote, “Tesla will be reducing salaried headcount by 10 percent, as we have become overstaffed in many areas.” Musk continued, “Note, this does not apply to anyone actually building cars, battery packs or installing solar. Hourly headcount will increase.”

@WholeMarsBlog also noted that this tends to be standard for Tesla each year, also sharing a story about Tesla cutting 9 percent of its employee base last year.

On Wednesday, Musk sent out an email banning remote work at Tesla, adding that employees who don’t like it can “pretend to work somewhere else.”