Tesla chief executive Elon Musk appears to have backflipped on his plan to cut 10 percent of the automaker’s workforce.
In an email sent to employees on Thursday last week, Musk said that he has a “super bad feeling” about the economy and planned to eliminate one in 10 of Tesla’s 100,000 employees. He also instructed Tesla executives to “pause all hiring worldwide.”
Fast forward a couple of days and Musk has changed his tune. When prompted by a Twitter follower suggesting that the total headcount at Tesla will increase in the coming 12 months, Musk said that yes, the company will grow its workforce “but salaried [employee numbers] should be fairly flat.”
Read More: Elon Musk Wants 10% Tesla Workforce Cull, Has “Super Bad Feeling” About Economy
Musk had followed up his original email with one on Friday where he stated that Tesla would reduce its salaried headcount by 10 percent, noting that it had become “overstaffed in many areas.” He then said that the carmaker’s “hourly headcount” would increase.
Total headcount will increase, but salaried should be fairly flat
— Elon Musk (@elonmusk) June 4, 2022
Last week proved to be quite an uncertain one for many Tesla employees. Musk started off the week by telling all employees that they can no longer work remotely, must return to the office, and have to spend a minimum of 40 years each week at the office. He said that those who failed to comply would be assumed to have resigned.
Many industry observers believe that Musk made the proclamation as a way to cut jobs, knowing that many employees wouldn’t want to return to the office, meaning Tesla could avoid sacking them and providing them with redundancy packages. It has also been reported that Tesla does not have enough desk space or parking spaces at its facilities to accommodate all of its employees.