Elon Musk has called for 10% percent salaried staff to leave owing to over-staffing issues
Elon Musk finds a solution as he grapples with a swelling workforce in automaker company, Tesla.
The SpaceX founder told Tesla Inc. that almost 10 % of salaried workers would lose their jobs.
The Chief executive officer sent out an internal email, this Friday, confirming his decision to reduce the headcount because of over-staffing.
In the same note, Musk clearly mentioned that these cuts won’t apply to those working on building cars and battery packs and hourly workforce will be expanded in the company.
It was hard but Musk had to make such a decision as he had a super bad feeling about the economy.
Soon after the news circulated, Tesla shares started to decline by 9.2% in New York, the biggest loss since late April.
In the annual Tesla report release , about 39% of roughly 100,000 workers were production line employees.
It is pertinent to know that the company did make a boost lately as two vehicle assembly plants opened up and its global sales volume was in its most recent quarter while Musk predicted “substantially higher” growth later this year.
The pandemic-related restrictions have affected the output in the company’s Shanghai plant.