June 7, 2022
Tesla CEO Elon Musk has sent a follow-up email to company executives urging them to “pause hiring worldwide.” The billionaire also announced plans to cut 10% of Tesla’s workforce.
“Tesla will be reducing salaried headcount by 10% as we have become overstaffed in many areas,” Musk said in the email.
Musk also revealed in another email that the layoffs would hit Tesla’s white-collar workforce.
The billionaire’s email about layoffs follows earlier emails calling on top executives to enforce a back-to-office mandate for employees.
While some experts commended Musk for his decision, others criticized him for the action. David Lewis, CEO of Operationsinc, an HR consulting firm in Connecticut, said Musk will regret his strategy of mandates and layoffs.
“He just essentially launched a massive ad campaign that communicated Tesla is a ‘work-in-office-only’ company, which could prove very problematic for those trying to develop a candidate pipeline for them,” Lewis said.
The sources for this piece include an article in ComputerWorld.
