Elon Musk has reportedly asked Tesla executives to “pause all hiring worldwide” and cut approximately 10% of the staff because of “bad feeling about the economy.”
Many people suspect this was a layoff as Musk had to know a certain percentage of remote workers who would not want to come back to the office.
Musk confirmed it in an email to a Tesla executive.
CEO of Tesla Elon Musk has a “super bad feeling” about the economy and wants to cut about 10% of jobs at the carmaker. He said in an email to executives.
This will be a notable move for the company since the company has a strength of 100,000 employees, and cutting 10% of employees would mean lessening the force by 10,000.
The CEO had recently made remarks about the US going to be in recession soon, for 18 months. However, he also said that “it is a good thing” and that “some bankruptcies need to happen.”
Tesla is likely to have a challenging, tough second quarter because of the Gigafactory Shanghai month-long shutdown. the automaker is as a result, expected to break its streak of record quarters for deliveries.
Tesla pausing hiring across the globe is a critical move and would indicate other concerns. Musk reportedly wrote in the email that he is worried about the economy and appears to want Tesla to be leaner to withstand a more significant economic downturn if it comes.