According to Reuters, Elon Musk, Tesla CEO, has a “super bad feeling” about the economy and plans to cut about 10% of salaried staff. In an email sent to executives yesterday, he laid out his concerns and told them to “pause all hiring worldwide”. This announcement came to a couple of days after Musk told staff to return to the office or leave.
Elon musk has been topping headlines this week with his controversial announcement about remote work. During an email, Musk told employees that they are required to work a minimum of 40 hours per week in the office if they want to work remotely. Otherwise, they could look for a different job.
Tesla is Cutting Off Staff
In the email seen by Reuters, Musk said Tesla will be reducing salaried headcount by 10% as it has become “overstaffed in many areas.” But “hourly headcount will increase.” He specified that the announcement does not apply to those building cars, battery packs, or installing solar.
The CEO of the electric carmaker recently warned about the risks of recession, but his email ordering a hiring freeze and staff cuts was the most direct message about his concerns. Adam Jonas, an analyst of Morgan Stanely, said that Musk is deeply informed about the global economy, so his message would carry “high credibility.”