After former Tesla workers filed a lawsuit claiming the EV maker violated U.S. labor regulations, Elon Musk has made some clarifications as to how many Tesla employees may lose their jobs.

According to a Reuters article from earlier this month, which was based on an internal email written by the Tesla CEO, Musk wants to eliminate 10% of the workforce. In the memo, he expressed having a “super bad feeling” about the economy.

However, Musk stated during a Bloomberg event on Tuesday that Tesla would decrease its salaried workforce by 10% over the following three months while increasing its hourly workers. This was confirmed in a subsequent email to Tesla employees obtained by CNBC.

The layoffs Tesla announced on Tuesday would affect roughly 3.5% of the company’s staff, according to Musk, who added that the precise percentage was “not super material.” 

Musk downplayed the suit’s significance on Tuesday, saying it has “no standing.”

“That is a small lawsuit of minor consequence,” he said. “Anything that relates to Tesla gets big headlines, whether it is a bicycle accident or something much more serious.”


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