Elon Musk

Elon Musk says Tesla will lay off 3.5% of total workforce as ex-employees sue company

Elon Musk has sought to clarify how many Tesla workers will lose their jobs, following the launch of a lawsuit by former employees who claim the automaker breached U.S. labor laws.

Speaking at an event hosted by Bloomberg Tuesday, Musk said Tesla would reduce its salaried workforce by 10% in the next three months, while at the same time growing the number of hourly employees.

report earlier this month from Reuters said Musk wanted to cut 10% of jobs, citing an internal email penned by the Tesla CEO. In the memo, Musk reportedly said he has a “super bad feeling” about the economy.

But in a follow-up email to Tesla staff obtained by CNBC, Musk clarified the firm will be reducing its salaried headcount by 10% and increasing its hourly staffing.

Musk said Tuesday that this meant Tesla’s layoffs announcement would affect around 3.5% of its overall workforce, adding the actual amount was “not super material.” Salaried workers account for about two-thirds of Tesla employees, he added.

“A year from now, I think our headcount will be higher in both salaried and obviously in hourly,” Musk said.

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