Tesla to Layoff 3.5% of Staff and Freeze Hiring

    Photo: Getty Images [via Business Insider]

    The Facts

    • Elon Musk announced on Tues. that Tesla is moving forward with laying off 10% of its salaried staff while also growing the number of hourly employees.

    • One-third of Tesla employees are salaried and a 10% cut will result in a 3.5% reduction in the total employee headcount.

    The Spin

    Narrative A

    This is happening just as a recession looms. Musk is the wealthiest man in the world and he's taking action against - and openly criticizing - hardworking employees rather than addressing actual issues within his company.

    Narrative B

    Musk is a shrewd businessman and it's his right to do what he wants with his company. A recession is coming and business leaders need to protect their companies. Working from home has made white-collar workers lazy. Tesla needs to cut down on its bloated staff.

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