Musk said that Tesla staff will be cut by about 10% in three months

Musk said that Tesla staff will be cut by about 10% in three months

Elon Musk confirmed plans to reduce the number of Tesla’s permanent employees by about 10% within three months. Musk said this while speaking at the Qatar Economic Forum.

“Tesla is reducing the number of fixed-wage workers by about 10 percent over the next three months or so. We expect to increase the number of hourly workers. In terms of wages, we’ve grown very quickly, and in some areas even too quickly,” Musk noted.

The planned cuts will affect only 3-3.5% of the company’s total workforce. In general, Tesla expects to operate under a new model in which two-thirds of employees will be paid by the hour and one-third – monthly, he added.

Earlier, Musk reported a “very bad feeling about the U.S. economy” and warned of his intention to “cut about 10% of employees” as well as “suspend hiring worldwide.”

Speaking at the All-in Summit technology conference in Miami in mid-May, Musk said that the United States economy was in a recession and would come out of it in at least a year.