Elon Musk has ‘Super Bad Feeling’ about Economy, Planning to Cut 10% of Tesla Jobs, Asks Execs to ‘Pause all hiring Worldwide’

According to an email that was sent to Tesla executives Thursday, Elon Musk has a “super bad feeling” about the economy. The email was titled “pause all hiring worldwide,” inside the email, he states his plan to reduce jobs by 10%.

Tesla stock traded down on the news. TrendSpider shared to Twitter:

“$TSLA Tesla to pause all hiring, cut workforce by ~10%” alongside a screenshot of the news of the hiring pause and plans to cut 10% of staff.

$TSLA Tesla to pause all hiring, cut workforce by ~10% pic.twitter.com/rVcml52MyE

— TrendSpider (@TrendSpider) June 3, 2022

Earlier this week Musk sent out a series of emails, telling workers to come back to the office for 40+ hours or be let go.

In one email he stated, “Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla. This is less than we ask of factory workers.“

This was followed up with an email sharing, “The more senior you are, the more visible must be your presence. That is why I lived in the factory so much – so that those on the line could see me working alongside them. If I had not done that, Tesla would long ago have gone bankrupt.“

With the release of the two emails about needing to show up for work, some speculated that this was a signal that layoffs would be coming for the Tesla Motors. With the news of the newest email, those speculations seem to be justified.

Musk’s newest email seems to echo a similar sentiment as those of JPMorgan CEO Jamie Dimon.

Dimon made remarks earlier this week saying, “hurricane is right out there down the road coming our way”.

With inflation near 40-year highs, the Fed is trying to engineer a soft landing for the economy. They are attempting to bring down inflation without spurring a recession. The Fed’s inflation target is 2%, April’s inflation was 8.26%.

The Winklevoss Twins are also cutting 10% of their staff because of what they are calling a “crypto winter”.

Altcoin Daily tweeted, “JUST IN – US Bitcoin Exchange @Gemini Cuts Staff By 10%, Blames “Crypto Winter”

JUST IN – US Bitcoin Exchange @Gemini Cuts Staff By 10%, Blames “Crypto Winter” 💀

— Altcoin Daily (@AltcoinDailyio) June 2, 2022

Only time will tell what we will face ahead with the economy if we head into a recession or if the Fed can engineer a soft landing.

Musk’s emails about returning to work can be seen in full below.

First email:

Subject: Remote work is no longer acceptable

Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla. This is less than we ask of factory workers.

If there are particularly exceptional contributors for whom this is impossible, I will review and approve those exceptions directly.

Moreover, the “office” must be a main Tesla office, not a remote branch office unrelated to the job duties, for example being responsible for Fremont factory human relations, but having your office be in another state.

Thanks,
Elon

Second Email:

Subject: To be super clear

Everyone at Tesla is required to spend a minimum of 40 hours in the office per week. Moreover, the office must be where your actual colleagues are located, not some remote pseudo office. If you don’t show up, we will assume you have resigned.

The more senior you are, the more visible must be your presence. That is why I lived in the factory so much – so that those on the line could see me working alongside them. If I had not done that, Tesla would long ago have gone bankrupt.

There are of course companies that don’t require this, but when was the last time they shipped a great new product? It’s been a while.

Tesla has and will create and actually manufacture the most exciting and meaningful products of any company on Earth. This will not happen by phoning it in.

Thanks,
Elon