San Francisco: Elon Musk, CEO of Tesla and SpaceX, has reportedly a “super bad feeling” about the economy and needs to cut about 10% of jobs at the electric carmaker. In this regard, Elon Musk has told Tesla executives to pause all hiring worldwide.
The world’s richest man sent an email on Thursday titled “pause all hiring worldwide”, which came two days after the billionaire told staff to return to the workplace or leave, added to a growing chorus of warnings from business leaders about the risks of a recession.
According to its annual SEC filing, Tesla employed almost 100,000 people at the company and its subsidiaries at the end of 2021.
Musk has warned in recent weeks about the risk of a recession, but his email ordering a hiring freeze and staff cuts was the most direct and high-profile message of its kind from the head of an automaker.
Musk’s gloomy outlook echoes recent comments from executives, including JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs President John Waldron.
A “hurricane is right out there down the road coming our way,” Dimon said this week.
Inflation in the United States is hovering at 40-year highs and has caused a jump in the cost of living for Americans, while the Federal Reserve faces the difficult task of dampening demand enough to curb inflation while not causing a recession.
However, Elon Musk, the world’s richest man according to Forbes, did not elaborate on the reasons for his “super bad feeling” about the economic outlook.