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Chief Executive Officer Elon Musk said Tesla Inc.’s total headcount will increase, a day after telling employees he plans to reduce salaried staff by 10%.

Twitter account @WholeMarsBlog tweeted that Tesla's headcount would increase over the next 12 months.

The number of salaried employees will be “fairly flat" even as overall headcount rises, the billionaire said in a tweet Saturday, Musk said replying to the tweet

“Total headcount will increase, but salaried should be fairly flat," read his tweet.

Musk said that he had a "super bad feeling" regarding the economy in an email titled "pause all hiring worldwide" sent to Tesla executives on Friday. As a result, Musk said he would need to cut 10% of salaried staff, Reuters reported.

The chief executive officer said in an internal email Friday that headcount would be reduced because Tesla has become overstaffed in some areas, according to the people, who received the memo and asked not to be identified discussing the details.

Musk said in the same note that the cuts won’t apply to those who build cars or battery packs, the people said. The hourly employee workforce will be expanded, according to the email, which was reported earlier by auto news website Electrek.

Shares of the automaker slumped more than 9% Friday after news of the job cuts emerged.

About 39% of roughly 100,000 workers at Tesla were “production line employees," according to the company’s annual report.

Elon Musk’s recent demand that all Tesla Inc. employees get back to their desks or find work elsewhere has made him the latest figurehead of the return-to-office movement and his salvo against remote work could embolden others to act. Half of business owners expect to be operating in-person all the time a year from now, according to a new survey from insurer Nationwide. The developments highlight debates raging in boardrooms around the globe about how this new era of hybrid work will play out, and raise concerns that some firms might use the economic jitters as an excuse to jettison those workers who refuse to trudge back to the office.

 

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