Musk Confirms Tesla Layoffs: Reasons and Numbers

Elon Musk recently announced in an email that he wanted to lay off 10 percent of Tesla employees. Now Musk has fleshed out those numbers.

Updated June 21, 2022:

10 percent becomes 3.5 percent. In an interview with Bloomberg, Elon Musk detailed the planned job cuts at Tesla. According to this, 10 percent are actually to be laid off in the next few months – but “only” among employees. Tesla, on the other hand, even wants to hire new staff for workers. Overall, this would result in job cuts of 3 to 3.5 percent at Tesla over the next three months. As a reason, Musk said that Tesla had grown too quickly among employees. In addition, he is known to have a bad feeling about the economic situation.

Musk did not say whether and to what extent the Tesla factory in Grünheide, Brandenburg, will be affected by the job cuts among employees.

update end

Original message: Musk fires 10 percent of Tesla employees – because of bad feelings

Reuters reports that Elon Musk wants to lay off around ten percent of the Tesla workforce. Musk is said to have written this in an email he sent to senior Tesla employees on Thursday. The email said Musk had a “super bad feeling” about the economy. The email is said to have had the subject line “Suspend all new hires worldwide”.

Tesla employed around 100,000 people at the end of 2021. According to this, around 10,000 people would have to leave the company. Tesla did not comment on the report about Musk’s email to Reuters.

At the end of May 2022, Musk still viewed a recession positively, as quoted by Reuters: “Yes, but that’s actually a good thing. It’s been raining money on fools for too long. Some bankruptcies have to happen.”

In 2018, there had already been layoffs on a larger scale at Tesla: Tesla laid off 9 percent of its employees.

Just a few days ago, Elon Musk made headlines with his order that all Tesla employees have to go back to the office. Anyone who absolutely wants to work in the home office must leave the company: Elon Musk – No more home office or leave and interns are threatened with being thrown out.

Tesla’s job offers in Germany

Elon Musk’s mail has apparently not yet had any effect on the Tesla website with the current job advertisements for Germany. Because there are still many open jobs advertised there.

The “magic” number 10

Tesla is already the third company within a few days that wants to part with ten percent of its employees. Because Klarna and Tomtom have also announced that they are laying off ten percent of their employees:

Tomtom fires every 10th employee – the reasons

Klarna list of names with the dismissed free on the web – the reason

PC WORLD exclusive: This is how Klarna fires, the amount of the severance payment & creative reactions

Klarna is laying off 10 percent of its employees – via video message

The situation at Vodafone is a bit different: they are talking about 7 percent, not 10, and this figure does not refer to the number of employees, but to that of the branches: Vodafone – that’s how many branches are closed.

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