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Musk says Tesla needs to cut staff by 10 percent, pauses all hiring

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Tesla CEO Elon Musk has a “super bad feeling” about the economy and wants to cut about 10% of jobs at the electric carmaker, he said in an email to executives seen by Reuters.

The message came two days after the world’s richest man told employees to return to the workplace or leave the company.

Tesla employed around 100,000 people in the company and its subsidiaries at the end of 2021, according to its annual SEC filing.

Tesla CEO Elon Musk has a “super bad feeling” about the economy and wants to cut about 10 percent of jobs at the electric carmaker, he said in an email to executives on Thursday seen by Reuters.

The message came two days after the world’s richest man told employees to return to the workplace or leave the company.

Tesla employed around 100,000 people at the end of 2021, according to its annual SEC filing.

Tesla was not immediately available for comment.

The message, sent on Thursday and titled “pause all hiring worldwide”, came two days after the billionaire told staff to return to the workplace or leave, and adds to a growing chorus of warnings from business leaders about the risks of a recession.

Tesla shares fell 9% in U.S. trade on Friday after the Reuters report. The tech-heavy Nasdaq was down about 2%.

In another email to employees on Friday, Musk said Tesla will be reducing its salaried headcount by 10%, as it has become “overstaffed in many areas.” But “hourly headcount will increase,” he said.

“Note, this does not apply to anyone actually building cars, battery packs, or installing solar,” Musk wrote in the email seen by Reuters.

Tesla’s billionaire boss said that the domestic economy is in for a “rude awakening.” He also said that working from home has made Americans lazy.

When asked by a Twitter user

When asked by a Twitter user if he thought there would be a recession, Musk replied: “Yes, but this is actually a good thing. It has been raining money on fools for too long.”

He then added: “Some bankruptcies need to happen. Also, all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard.”

“Rude awakening inbound!”

Musk was then asked how long he thought the recession would last.

“Based on past experience, about 12 to 18 months,” the tech mogul replied.

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