As Tesla is being sued by employees claiming it broke US labor law, Elon Musk has come out and clarified just how many Tesla staffers will be laid off.

Speaking at an event, Musk said he was going to cut 10% of the salaried workforce, but he was going to increase the hourly workforce. Presumably that will mean just shifting many employees from salaried to hourly.

Previous reports had quoted a company email, where Musk said he was going to be cutting 10% of Tesla’s workforce, and noted that he had a “super bad feeling” about the economy.

Musk said his current plans would only lay off about 3.5% of Tesla’s workforce, although he added the actual numbers were not “super material.” About two thirds of Tesla’s workforce are salaried employees.

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

Two Tesla employees alleged in a newly filed lawsuit that Tesla violated US federal laws with respect to “mass layoffs.” according to the Worker Adjustment and Retraining Notification Act, when when subject to a mass layoff, workers must be given 60 days advance notice to prepare for the event.

Musk dismissed the suit as having, “no standing.”

He said, “That is a small lawsuit of minor consequence. Anything that relates to Tesla gets big headlines, whether it is a bicycle accident or something much more serious.”

At the event, Musk was asked about the possibility of the economy tipping into a recession, and he responded it was, “inevitable at some point,” and “more likely than not” in the near term, though he added, “It’s not a certainty.”