San Francisco Tesla Chief Executive Elon Musk has a “super negative feeling” about the economy and is planning to eliminate around 10% of the jobs at the electric car maker. In an email sent to executives on Thursday, Reuters saw.
The announcement came within two weeks of the world’s wealthiest man instructing his employees that they must return to their workplace or leave the firm.
Tesla ( TSLA) employed about 100,000 employees within the company as well as its affiliates at the time of 2021. This was according to their Annual SEC filing.
The company wasn’t immediately available to comment.
Musk’s stern warning of the possibility of a recession and the knock-on impact on automakers is the most precise and prominent prediction in the auto industry.
Although concerns over the possibility of a recession have increased, and so has the demand for Tesla automobiles and other hybrid vehicles, have been strong, and a lot of the conventional indicators of a recession — such as the rise in the inventory of dealers within the United States — have not been observed.
However, Tesla has had difficulty resuming manufacturing at their Shanghai plant after the lockdowns of Covid-19 forced expensive outages at the plant.
Musk’s downbeat outlook is echoed in recent statements from top executives like JPMorgan Chase ( JPM) CEO Jamie Dimon and Goldman Sachs ( GS) President John Waldron.
A “hurricane is just in the distance, coming towards us,” Dimon said this week.
The inflation rate in the United States is hovering at 40-year-highs. It has caused an increase in living costs for Americans as the Federal Reserve faces the difficulty of controlling demand sufficiently to stop inflation without creating the possibility of a recession.
“Put out all hiring.”
Before Musk’s announcement that was sent in an email that reads “pause hiring across the world,” Tesla had about 500 job listings in its profile on LinkedIn from sales representatives in Tokyo and engineers at the company’s new Berlin giga factory as well as a deep-learning scientist at Palo Alto.
Musk’s request for staff to return to their offices has sparked protests in Germany.
“Everyone at Tesla must spend an average of 40 hours working every month,” Musk wrote in his email on Tuesday. “If you do not show up, we’ll take it as a sign that you’ve quit.”