Elon Musk says Tesla will reduce salaried headcount by 10%, while increasing hourly employees

Elon Musk giving YouTube tech reviewer Marques Brownlee a tour of the Fremont factory. (Credit: MKBHD/YouTube)

After Tesla CEO Elon Musk reportedly sent an email to company executives stating the automaker may reduce its employee headcount by 10 percent due to a “super bad feeling” about the economy, he sent another email to all employees confirming the company is “overstaffed in many areas.”

“Tesla will be reducing salaried headcount by 10%, as we have become overstaffed in many areas,” Musk wrote in the email, obtained by @WholeMarsBlog. “Note, this does not apply to anyone actually building cars, battery packs, or installing solar. Hourly headcount will increase.”

According to a report from Reuters this morning, Musk sent an email to only executives with the subject line reading “pause all hiring worldwide.” In the email, Musk stated he had a “super bad feeling” about the economy, which would then result in a 10 percent employee headcount. Tesla had 99,290 employees at the end of 2021.

The email that was sent company-wide is different from the initial email, which was never leaked in its entirety. Tesla still maintains thousands of job postings on its Careers webpage.

Musk stated in a series of emails earlier this week that employees would be required to spend 40 hours per week in a Tesla office, eliminating the possibility of remote work.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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