Elon Musk, Tesla’s CEO, confirmed that the company will reduce its salaried workforce by 10% over the next three months. According to the executive’s calculation, the promised layoffs represent a reduction of 3.5% in the total staff.
In an interview with Bloomberg, the executive explained that the cuts will happen because the growth of this category of professionals was faster than planned. The idea, now, is to increase the number of professionals he receives per hour, said the billionaire.
Musk said that, in up to a year, the expectation is that the total number of employees will grow and that the reduction now will not be “significant”.
Recently, the executive became involved in controversies related to the management of his employees when he sent an email imposing face-to-face work or dismissal. Days later, he himself retreated.
Tesla has been expanding, with headquarters heading to Austin, Texas. Worldwide, the company has around 100,000 employees.
Amid the controversies, some layoffs are already happening, and the company has been facing some lawsuits in court. As is the case with two workers at the battery factory in Nevada, who claim that Tesla failed to meet the 60-day notice requirement to give notice of the layoff.
What determines the period is the Worker Adjustment and Retraining Notification Act. A lawsuit filed in Federal Court in Austin looks into the case.
On the subject, Musk stated that he will not waste much time in processes that, according to him, have no legitimacy.
Although controversial, experts say that Musk’s decisions influence the corporate world. The executive participates in the purchase of Twitter; develops SpaceX, with flights to space; operates Starlink satellites to provide, among other features, internet in remote areas; in addition to Tesla electric cars.
Regarding the competition, Musk believes that Tesla has its place guaranteed and does not think about rivals. For the entrepreneur, the company has long waiting lines, and the challenge at the moment is to adapt supply chains to production capacity.