Elon Musk Wants To Cut 10% Off Tesla Jobs

Tesla will reportedly cut about 10% of jobs because its CEO Elon Musk has a ‘super bad feeling’ about the US economy. In a message sent to executives on Thursday, June 2nd, 2022, Musk laid out his concerns and told them to ‘pause all hiring worldwide’. The news follows Musk ordering Tesla staff back to the office saying Work From Home is ‘no longer acceptable’.

Number Of Tesla Employees

The electric carmaker had 99,290 employees worldwide at the end of 2021. However, it is not confirmed how many are salaried employees and how many are hourly workers.

Who Will Be Affected By This Feat Of Elon Musk?

Musk in a separate email to staff on Friday, June 3rd said that the salaried headcount will be cut by 10%, citing the company becoming “overstaffed in many areas,”.

“Note, this does not apply to anyone actually building cars, battery packs or installing solar,” he said, also noting that “hourly headcount will increase.”

So, in a nutshell, hourly workers are not going to lose their jobs.

Why Elon Musk Is Doing So?

Looks like Elon Musk is not a fan of ‘work from home’ and only salaried employees are able to do so. Therefore, Musk told Tesla staff in a separate email that employees “should pretend to work somewhere else” if they’re not willing to return to their offices.

He further said, “Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla,”.

Effect On Tesla Stock

Tesla shares fell 8.5% after news of the hiring freeze emerged.


The move is already facing backlash in Germany with the IG Metall union in Berlin-Brandenburg-Sachsen, where Tesla’s plant is located, said it would support any employee who opposed Musk’s ultimatum.

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