Tesla CEO Elon Musk.
Following the filing of a lawsuit by former employees alleging that the manufacturer violated U.S. labor regulations, Elon Musk has sought to explain how many Tesla employees will be laid off.
Musk stated at a Tuesday event hosted by Bloomberg that Tesla would decrease its salaried employment by 10 percent over the next three months while increasing its hourly workforce.
Reuters reported earlier this month that Tesla CEO Elon Musk wants to slash 10 percent of employment, citing an internal email sent by Musk. Musk reportedly stated in the memo that he has a "terrible feeling" about the economy.
Musk emphasized in a follow-up email to Tesla employees acquired by CNBC that the company will reduce salaried employment by 10% while increasing hourly staffing.
Musk stated on Tuesday that the layoffs will effect approximately 3.5 percent of Tesla's total employees, adding that the actual number was "not super substantial." Approximately two-thirds of Tesla's staff are salaried, he added.
Musk stated, "I believe our workforce will increase in both salaried and hourly positions a year from now."
Two former Tesla employees filed a complaint against the firm on Sunday, alleging that the corporation broke U.S. federal regulations surrounding "mass layoffs."
According to billionaire entrepreneur Elon Musk, the suit has "no standing."
This is a little litigation with no real ramifications, in his opinion. A bicycle accident or anything far more serious, as long as it has to do with Tesla, receives a lot of attention.
Recently, criticism has been leveled at Tesla CEO Elon Musk's handling of his employees. Recently, he made the announcement to Tesla staff that if they didn't work 40 hours a week, they would be asked to quit the company.
When it comes to embracing the post-Covid push toward remote working like other tech chiefs, Musk isn't on board. A good example is Twitter CEO Parag Agrawal, whom Musk wants to buy. If you'd like to work from home, he suggests that you "appear to work somewhere else."
In an effort to combat excessive inflation, the Federal Reserve raised interest rates for the first time since 1994 last week.
There is an increased likelihood of a recession.
It's inevitable that the economy will enter a recession at some point in time, according to Musk. However, he doesn't know exactly when.
"It is more likely than not" that we will have a recession in the near future, he said. Despite this, he cautioned, "It's not a guarantee."
Economists are concerned about the possibility of "stagflation," in which prices rise while the economy declines.