Elon Musk has confirmed that Tesla will cut 10% of its salaried workforce over the next three months.
He told a business conference in the Middle East that the reduction would be around 3.5% of the company’s 100,000 employees worldwide.
The issue of staff cuts surfaced earlier this month when he said in a series of emails to staff that he was worried about the outlook for the economy and the business and therefore Tesla would cut 10% of its staff.
This was later clarified to 10% of salaried staff and that there would be no reduction in the number of blue collar workers involved in actual car production in the US, China and Germany.
In emails from early June, Musk told managers to “suspend all hiring globally.”
The grim outlook came two days after the billionaire told staff to return to work or leave.
Earlier this week, it was revealed that former Tesla employees had filed a lawsuit against Musk’s electric car company, alleging that his decision to carry out a “mass layoff” violated federal law because the company did not give notice of the job cuts.
Reuters reported that the lawsuit was filed Sunday night in Texas by two workers who said they were fired from Tesla’s massive factory in Sparks, Nevada, in June.
According to the lawsuit, more than 500 employees were terminated at the Nevada plant.
The lawsuit claims Tesla failed to comply with U.S. federal mass layoff laws that require a 60-day notification period under the Worker Adjustment and Retraining Act.
They are seeking class-action status for all former Tesla employees across the United States who were terminated in May or June without notice.
“Tesla merely informed the employees that their layoffs would be effective immediately,” the complaint states.
Musk downplayed the lawsuit as “meaningless” at the Middle East business conference he spoke at on Monday.
“Let’s not read too much into a pretrial trial that has no value,” he said at the Qatar Economic Forum hosted by Bloomberg.
“It seems that anything related to Tesla gets a lot of clicks, whether it’s insignificant or significant. I would put this lawsuit you’re referring to in the trivial category.
Musk told the same forum that he “never said people should invest in crypto[currency]“As retail investors feel the pain of the fall in the digital coin market, which is now called The Crypto Winter.
Despite buying and promoting Dogecoin, Musk told the Qatar Economic Forum on Tuesday that he makes a distinction between publicly supporting the digital coin and encouraging others to invest.
In the case of Tesla, SpaceX, myself, we’ve all bought bitcoin, but it’s a small percentage of our total cash,” Musk told Bloomberg (Bloomberg hosted the forum).
Musk added that he also purchased Dogecoin, which can also be used to purchase Tesla merchandise.
Separately in the United States, Twitter’s board voted to approve Musk’s $54.20 per share bid.