Elon Musk Thinks A Recession Is Locked In

Tesla To Lay Off 10% - Photo by Tesla Fans Schweiz on Unsplash

Elon Musk Wants To Cut 10% of Tesla Jobs – Reuters

Tesla CEO Elon Musk has a “super bad feeling” about the economy and has told staff to pause all hiring worldwide.

Musk said Tesla will be reducing salaried headcount by 10% but increasing hourly headcount.

Elon Musk warned about the risks of recession, but his email ordering a hiring freeze and staff cuts carried high credibility.

So far, demand for Tesla cars has remained strong, but the company has struggled to restart production at its Shanghai factory after costly outages.

Tesla CEO Elon Musk said that the United States is facing a hurricane of inflation while the Federal Reserve faces the difficult task of dampening demand enough to curb inflation without causing a recession.

Several analysts have cut price targets for Tesla recently, forecasting lost output at its Shanghai plant. The company has 32,000 vehicles awaiting delivery in China.

Tesla has 5,000 job postings on LinkedIn and scheduled an online hiring event for Shanghai on June 9. Musk’s demand that staff return to the office has already faced pushback in Germany.

Jason Stomel, founder of tech talent agency Cadre, said Tesla could use the return-to-office memo to get people to leave.

Releasing the email could be the motivation Musk needed to plant to get people to return to working in the office.

In either case several companies have already started layoffs with the expectations that a recession is going to impact demand or already has.

For more on this story, please consider these sources:

  1. Exclusive: Elon Musk wants to cut 10% of Tesla jobs  Reuters
  2. Elon Musk has ‘a super bad feeling’ about the economy – or rather Tesla? | DW News  DW News
  3. Musk says Tesla to pause hiring, wants to cut 10% of staff: report  Fox Business
  4. Elon Musk’s emails are another reason why he’s not a good boss  MSNBC
  5. Elon Musk’s authoritarian delusions about office work are only going to hurt Tesla  San Francisco Chronicle
  6. View Full Coverage on Google News
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