Addressing the Qatar Economic Forum organised by Bloomberg, the world’s richest man said that the electric car-maker will cut salaries by 10 per cent over the next three months, as the company navigates the global macro-economic conditions.
This would result in reducing Tesla’s total headcount by roughly 3.5 per cent.
Tesla employs more than 100,000 people across its facilities, and saw over 40 per cent increase in the company’s workforce last year.
It last week started another wave of layoffs, including hourly workers instead of just salaried employees.
The layoffs began in its sales and delivery teams across North America, reports Electrek.
The layoffs come amid Tesla’s being in the middle of a difficult end-of-quarter delivery wave, which Musk himself warned employees about, saying that it will be “nutty“.
Earlier this month, Musk told Tesla executives in an email that they need to cut 10 per cent of the workforce and pause hiring due to having a “super bad feeling” about the economy.
Later, Musk decided to clarify the Tesla layoffs in an email to all employees. He even stated that “hourly headcount will increase”.