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Elon Musk clarifies Tesla layoffs after ex-employees sue firm

Tesla CEO Elon Musk.

Patrick Pleul | AFP | Getty Pictures

Elon Musk has sought to make clear what number of Tesla staff will lose their jobs, following the launch of a lawsuit by former workers who declare the automaker breached U.S. labor legal guidelines.

Talking at an occasion hosted by Bloomberg Tuesday, Musk stated Tesla would scale back its salaried workforce by 10% within the subsequent three months, whereas on the identical time rising the variety of hourly workers.

A report earlier this month from Reuters stated Musk wished to chop 10% of jobs, citing an inner e-mail penned by the Tesla CEO. Within the memo, Musk reportedly stated he has a “tremendous dangerous feeling” in regards to the financial system.

However in a follow-up e-mail to Tesla employees obtained by CNBC, Musk clarified the agency shall be lowering its salaried headcount by 10% and rising its hourly staffing.

Musk stated Tuesday that this meant Tesla’s layoffs announcement would have an effect on round 3.5% of its general workforce, including the precise quantity was “not tremendous materials.” Salaried staff account for about two-thirds of Tesla workers, he added.

“A yr from now, I believe our headcount shall be larger in each salaried and clearly in hourly,” Musk stated.

On Sunday, two former Tesla workers filed a lawsuit against the company alleging it violated U.S. federal legal guidelines concerning “mass layoffs.”

Below the Employee Adjustment and Retraining Notification Act, employers are required to present 60 days advance discover of a mass layoff or plant closure.

Musk, the world’s richest man, dismissed the significance of the go well with Tuesday, saying it has “no standing.”

“That may be a small lawsuit of minor consequence,” he stated. “Something that pertains to Tesla will get large headlines, whether or not it’s a bicycle accident or one thing rather more severe.”

Musk’s remedy of staff has been beneath scrutiny currently. He lately informed Tesla workers that they need to come into the workplace no less than 40 hours every week or depart the corporate.

Whereas different tech bosses — together with Parag Agrawal, the CEO of Twitter, which Musk is making an attempt to purchase — have embraced the post-Covid drive into distant working, Musk is not on board. He has stated individuals eager to work remotely “ought to faux to work some place else.”

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