Tesla Begins New Round Of Layoffs, Including Hourly Workers

Tesla has begun a new round of layoffs, this time also including hourly workers, not just salaried employees as its CEO Elon Musk said, according to automotive news site Electrek on June 17. Tesla began a new round of layoffs yesterday, including many salaried employees in its North American sales and delivery teams, sources close to the situation confirmed.

On June 3, Tesla CEO Elon Musk said in an email to executives that he felt the economy was in bad shape and that Tesla needed to lay off 10 percent of its workforce and planned to suspend its global hiring program. The news triggered a plunge of more than 9 percent in Tesla's stock price. Musk later tweeted in response that "the total number of Tesla employees will increase, but the number of salaried employees should remain fairly stable."

In response to the news of the global suspension of recruitment, a source close to Tesla China had revealed that no news of layoffs had been heard and that large-scale recruitment was underway not long ago. "Tesla China side recruitment is very strict, or very short of talent."

In recent years, Tesla's staff team has been in a state of accelerated expansion. Data show that from 2019 to 2021, the company will have 48,016, 70,757 and 99,290 employees, respectively. In 2021 alone, Tesla has recruited 28,533 employees worldwide, a significant 40.3% increase in the number of employees, with the new positions mainly concentrated in two regions, Europe and China.

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