TransportationUS

Tesla Layoffs

June 2022

Tesla announced a layoff affecting 0 employees (10% of its workforce) in June 2022. The company operates in the Transportation sector.

People Affected

Percentage

10%

Announced Date

Jun 3, 2022

About

Tesla announced layoffs on June 3, 2022, cutting 10% of its salaried workforce, which translates to nearly 10,000 employees based on its global headcount of 99,290 at the end of 2021. CEO Elon Musk cited overstaffing and a "super bad feeling" about the economy as reasons, while clarifying that production workers would not be affected and hourly staffing would increase. The news triggered an 8-9% drop in Tesla's stock and drew a pointed response from President Joe Biden, who contrasted the cuts with investments by Ford and Stellantis in electric vehicles. As a major player in the automotive and clean energy industry, Tesla's move reflects broader economic uncertainties and strategic adjustments in scaling its operations.