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Elon Musk explains that Tesla will give 3.5% of the workforce as former employees sue the company

Elon Musk explains that Tesla will give 3.5% of the workforce

June 22, 2022: -Elon Musk has aimed to explain how many Tesla workers will renounce their jobs after the launch of a lawsuit by ex-employees who claim the automaker breached U.S. labor laws.

On Tuesday, Musk said Tesla is decreasing its salaried workforce by 10% in the future three months while simultaneously increasing the number of hourly employees.

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

But in a follow-up email to Tesla staff received by CNBC, Musk elucidated the company would be lowering its salaried headcount by 10% and increasing its hourly staffing.

On Tuesday, Musk said that this meant Tesla’s layoff announcement would affect almost 3.5% of its overall workforce, which adds the actual amount was “not super material.” Waged workers account for about two-thirds of Tesla employees, he said.

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

Two former Tesla employees filed a lawsuit against the party on Sunday, alleging it violated U.S. federal laws regarding “mass layoffs.”

The employers must give 60 days advance notice of a mass layoff or plant closure

 under the act of Worker Adjustment and Retraining Notification.

The treatment of workers has been under scrutiny. He said that Tesla employees should come into the office at least 40 hours a week or leave the company.

While tech bosses, such as Parag Agrawal, the CEO of Twitter, which Musk wants to buy, have embraced the post-Covid drive into remote working, Musk isn’t on board. He added that people wanting to work remotely “should dissemble to work somewhere else.”

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