Tesla to Layoff 3.5% of Staff and Freeze Hiring

JUN 21 2022·Updated DEC 28 2022

Story

Image credit: Getty Images [via Business Insider]

The Facts

Elon Musk announced on Tues. that Tesla is moving forward with laying off 10% of its salaried staff while also growing the number of hourly employees.
CNN
One-third of Tesla employees are salaried and a 10% cut will result in a 3.5% reduction in the total employee headcount.
CNN
Musk has cited worries about the economy and what he views as a looming recession as the reason for the layoffs and hiring freeze.
wapo
Two former Tesla employees also recently sued the company, alleging it violated US federal laws regarding "mass layoffs."
CNBC
The federal Worker Adjustment and Retraining Notification Act requires employers to give 60 days advance notice of a plant closure or mass layoff.
CNBC
Tesla and its subsidiaries reportedly had ~99K active employees at the end of last year.
Forbes

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

This is happening just as a recession looms. Musk is the wealthiest man in the world and he's taking action against - and openly criticizing - hardworking employees rather than addressing actual issues within his company.

Forbes

Narrative B

Musk is a shrewd businessman and it's his right to do what he wants with his company. A recession is coming and business leaders need to protect their companies. Working from home has made white-collar workers lazy. Tesla needs to cut down on its bloated staff.

New York Post