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Speaking at the recent Qatar Economic Forum, Tesla CEO Elon Musk announced the upcoming layoffs for Tesla employees. Based on Reuters, he said that 10 percent of the company’s salaried workers would be given a running paper. Musk said that equates to about 3 to 3.5 percent of the automaker’s total workforce.
The announcement comes amid concerns that the US economy could enter a recession. It also comes just two weeks after an email leaked from Musk to Tesla executives calling for a 10 percent reduction in the automaker’s global workforce. The email also called for a halt to all new hiring. According to a filing with the SEC, Tesla was hiring about 100,000 people by the end of 2021. Barring significant changes since then, a 3.5 percent reduction equals 3,500 jobs lost by the end of the summer.
Motor1.com sent several messages to Tesla seeking comment and information regarding the layoffs. No response received.
It appears that some layoffs have occurred, and that could be a problem for the automaker according to Reuters. Former Tesla employees have filed a lawsuit claiming the company violated federal law with mass layoffs already taking place in Nevada. The lawsuit says 500 employees were laid off, and Tesla did not provide the 60-day notice required under the Worker Adjustment and Retraining Notices Act (WARN). More than 20 people have been identified as ex-employees who were released, and the lawsuit is seeking class action status.
Like layoffs, Motor1.com contacted Tesla for comment on the lawsuit but no response was received.
There is no question that Tesla vehicles are in demand. The automaker surpassed 300,000 global sales quarterly last year thanks to strong showings from the Model 3 and Model Y. Recent appearances of the Cybertruck prototype at official events suggest that Tesla’s late pickup truck is finally nearing the end of its development cycle.
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