BusinessTesla layoffs could loom amid recession fears: report

Tesla layoffs could loom amid recession fears: report



Elon Musk told Tesla executives that the company needs to cut about 10% of its workers, reports Reuters. That’s according to an email seen by the news agency and sent by Musk.

The email, which Reuters described as “brief,” was titled “pause all hiring worldwide” and in it, Musk said he had a “super bad feeling” about the economy. The email was sent on Thursday, two days after Musk sent another email to Tesla staff ordering workers to return to the office or lose their jobs. At the end of 2021, Tesla employed about 100,000 people, so a 10% reduction in workers would mean around 10,000 jobs at the company could be lost.

This isn’t the first time Musk has had a recession on his mind. In mid-May, he appeared virtually at the All-In Summit in Miami, where he stated, “I think we are probably in a recession and that recession will get worse . . . It’ll probably be some tough going for, I don’t know, a year, maybe 12 to 18 months, is usually the amount of time that it takes for a correction to happen.”

Musk isn’t the only business leader worried about the economy. With inflation nearing a 40-year high, many expect the United States and other countries to enter a recession later this year and plenty of tech companies have already announced layoffs to help cut costs in advance of an economic downturn.

Since news of the Tesla layoffs broke, TSLA stock is down nearly 5% in pre-market trading as of the time of this writing. We’ve reached out to Tesla for comment on Musk’s desired layoffs.





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