Elon Musk announced on Tuesday that Tesla will reduce its salaried workforce by 10% over the next three months.
Speaking at the Qatar Economic Forum, the world’s richest man announced that Tesla will reduce salaries by 10% over the next three months as the company navigates global macroeconomic conditions.
This would result in a 3.5% reduction in Tesla’s total headcount.
Tesla employs over 100,000 people across its facilities, and the company’s workforce increased by more than 40% last year.
It began another round of layoffs last week, this time involving hourly workers as well as salaried employees.
According to Electrek, the layoffs began in its sales and delivery teams across North America.
The layoffs occur as Tesla is in the midst of a difficult end-of-quarter delivery wave, which Musk has warned employees will be “nutty.”
Musk told Tesla executives earlier this month in an email that they needed to cut 10% of their workforce and pause hiring due to a “super bad feeling” about the economy.
Musk later decided to explain the Tesla layoffs in an email to all employees.
He even stated that “hourly headcount will increase”.
