Tech

Executing in-office work mandate is a major threat to Elon Musk

After sending an email to top managers in his company last week to demand that all employees return to the officeTesla CEO Elon Musk has indicated he wants to cut 10% of its workforce in anticipation of a severe recession.

Musk sent a follow-up email Thursday telling executives to “stop hiring worldwide” and said he planned to kill 10% of Tesla’s workforce, according to Reuters, who first received a copy of the message. The email was followed by another email the same day clarifying that the shots would target Tesla’s white-collar workforce.

“Tesla will reduce the number of salaried staff by 10% because we have too many staff in many areas,” Musk said in the email.

Peter Hirst, senior dean of executive education at MIT’s Sloan School of Management, said Musk has a vision of the work environment and culture he wants to create for Tesla. “There is some logic to that – they are a manufacturing company, there have to be some people to do that; it seems to be saying … everyone should (be present),” Hirst said . “It’s believable, and I think it’s appealing to some people who share that view and want to work in a culture and a personal environment.”

While the combination of office mandates and layoffs may be a significant distraction for Tesla and SpaceX staff, some workers will, over time, move toward companies that offer the conditions they need. It’s too early to tell whether Tesla will attract the talent it needs, Hirst said.

“… I think they will have no problem doing that,” he said.

Copyright © 2022 IDG Communications, Inc.

Executing in-office work mandate is a major threat to Elon Musk

Source link Executing in-office work mandate is a major threat to Elon Musk

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