Tesla (TSLA) plans to layoff 3.5% of its total workforce as the electric vehicle maker prepares
for a global recession.
Speaking at a public event, Tesla chief executive officer (CEO) Elon Musk said the automaker
will cut its salaried workforce by 10% over the next three months, while simultaneously growing
its number of hourly employees.
This means that Tesla’s layoffs will impact about 3.5% of its total workforce. Salaried workers
account for two-thirds of Tesla’s employees.
News of the layoffs came as former Tesla employees filed a lawsuit against the company,
claiming the electric vehicle maker breached U.S. labour laws.
Two former Tesla employees filed a lawsuit against the company alleging it violated U.S. federal
laws regarding “mass layoffs.” Under the “Worker Adjustment and Retraining Notification Act,”
employers are required to give 60 days advance notice of a mass layoff or plant closure.
Speaking to media, Musk dismissed the lawsuit, saying it has “no standing” and that it is a
“small lawsuit of minor consequence.”
Musk’s treatment of workers has been called into question after he recently said that Tesla
employees wanting to continue working remotely “should pretend to work somewhere else.”
Tesla has faced allegations of racism against Black workers. In February, the California
Department of Fair Employment and Housing sued Tesla over complaints about racial
discrimination and harassment.
Tesla stock is down 46% year to date at $650.28 U.S. per share.
