Returning to an email just two days ago saying 10% job cuts were needed, Tesla Inc chief executive Elon Musk said the electric vehicle maker’s total workforce would increase in over the next 12 months.
Making the announcement on Twitter, Musk said “total headcount will grow, but employees should be fairly stable.”
Stressing that he had a “super bad feeling” about the US economy, Musk previously told Tesla executives in an email, which was seen by Reuters, that he had to cut jobs by around 10%.
The total headcount will increase, but the employees should be fairly stable
— Elon Musk (@elonmusk) June 4, 2022
According to the email, Musk believed Tesla had become “overstaffed in many areas” as the Federal Reserve moved aggressively to tighten monetary policy in response to inflation.
Tesla, which had 100,000 employees at the end of 2021, issued an ultimatum to its employees asking them to return to the office for a minimum of 40 hours a week.
The timing of the email has been questioned by several analysts as Tesla sets up new factories in Austin, Texas and Germany.
Calling Musk’s email “somewhat odd,” CFRA Research analyst Garrett Nelson said the billionaire, who is the richest man in the world, “wants to get a head start in terms of a downturn in the highly cyclical automotive industry”.
Given that China is Tesla’s biggest market, Nelson added that most of the job cuts could take place in Shanghai, as production in the city has been weighed down by the Party’s zero-tolerance Covid-19 policy. Communist.
According to Wards Intelligence, in the United States, new car sales in May ended at a low annualized rate of 12.68 million after supply chains were exacerbated by Russia’s invasion of Ukraine. .
(With agency contributions)
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Post expires at 4:09pm on Wednesday June 15th, 2022