Tesla CEO Elon Musk said he expects his company’s total headcount to rise despite the 10% staff reduction he predicted in an email to employees.
According to Musk in a tweet Saturday, he will keep the number of salaried employees, “fairly flat,” as he raises the total headcount. Musk had said in the company email Friday that cuts would not apply to those who build cars or battery packs.
Shares of Tesla were down more than 9% on Friday as news of the job cuts spread. Making the data more ominous was the fact Musk attributed the cuts to a “super-bad” feeling about the US economy.
Of Tesla’s roughly 100,000 employees, about 39% are production line employees, who will presumably be immune to the cuts.