Elon Musk has a ‘bad feeling’ about the economy and wants to cut jobs at Tesla

(Reuters) – Tesla CEO Elon Musk has a “very bad feeling” about the economy and wants to cut about 10% of jobs at the electric car company, he wrote in an email sent to company executives on Thursday and to the public. to get it.

The message comes two days after the world’s richest man warned Tesla workers that they must return to offices or resign from the company.

Tesla employed about 100,000 people at the company and its subsidiaries as of the end of 2021, according to its annual filings with the Securities and Exchange Commission (SEC).

The company was not immediately available for comment.

Musk’s scathing warning about a possible recession and its impact on automakers is the most direct and dire forecast of its kind in the industry.

Recession concerns

Despite growing concerns about the risks of a recession, demand for Tesla cars and other electric vehicles remained strong. In addition, many of the traditional indicators of a recession – such as rising US trader stocks – did not materialize.

However, Tesla had problems resuming production at its Shanghai plant after the Covid-19 shutdown forced the plant to shut down operations at great cost.

Musk’s downbeat view reflects recent comments from executives including JPMorgan Chase CEO Jamie Dimon and Goldman Sachs Chairman John Waldron.

“This hurricane is coming upon us,” Damon said this week.

Inflation in the United States is at its highest level in 40 years, and it has caused the cost of living for Americans to rise. Meanwhile, the Federal Reserve faces the difficult task of curbing demand enough to control inflation but without causing a recession.

Musk: “All recruitment has been suspended.”

Prior to Musk’s warning, which came in an email titled “All Hires Suspended Globally,” Tesla had about 5,000 job openings on LinkedIn, from sales in Tokyo and engineers at its new factory in Berlin to scientists in deep learning in Palo Alto.

Musk’s demand that employees return to the office is already facing opposition in Germany.

“Everyone at Tesla is required to spend at least 40 hours in the office per week,” Musk wrote in an email on Tuesday. “If they don’t turn up, we’ll assume they quit.”

Musk also got into a feud on Twitter Thursday with Australian tech billionaire and Atlassian co-founder Scott Farquhar, who mocked the Tesla CEO’s request in a series of tweets as “something from the 1950s”.

“The recession serves a vital economic cleansing function,” Musk tweeted, in response to a message from Farquhar encouraging Tesla employees to look at his jobs from a distance.

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