202221 Jun

Elon Musk says Tesla will lay off 3.5% of total workforce as ex-employees sue company

Summary

Elon Musk has sought to clarify how many Tesla workers will lose their jobs, following the launch of a lawsuit by former employees who claim the automaker breached U.S. labor laws. Speaking at an event hosted by Bloomberg Tuesday, Musk said Tesla would reduce its salaried workforce by 10% in the next three months, while at the same time growing the number of hourly employees. A report earlier this month from Reuters said Musk wanted to cut 10% of jobs, citing an internal email penned by the Tesla CEO. But in a follow-up email to Tesla staff obtained by CNBC, Musk clarified the firm will be reducing its salaried headcount by 10% and increasing its hourly staffing. Under the Worker Adjustment and Retraining Notification Act, employers are required to give 60 days advance notice of a mass layoff or plant closure.

Source: Cnbc

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