Elon Musk to lay off 10% of Tesla employees because they ‘feel really bad’ about the economy

Tesla CEO Elon Musk plans to cut ten percent of jobs at the electric car maker because he has a “very bad feeling” about the economy. The company will also impose a moratorium on purchases, which will cause its share price to drop 8% in intraday trading.

Elon Musk sent Tesla executives an email on Thursday with the subject line “Suspend hiring worldwide,” according to the email seen by Reuters. According to Electrek, Tesla currently employs 110,000 people. Musk’s email indicates that, in addition to the hiring suspension, the company will lay off about ten percent of its employees.

While Musk didn’t explain in the email why he has a “very bad feeling” about the economy, the billionaire has repeatedly warned of the risk of recession in recent months.

“We’re probably in a recession, and this recession is only going to get worse,” Musk said at a conference in Miami Beach in May. “It’s probably going to be difficult, I don’t know, a year, maybe 12 to 18 months is the time it usually takes to fix it.”

In late May, when asked by a Twitter user whether the economy was in a recession, Musk replied, “Yeah, but it’s really good. For too long, money flows to idiots. There has to be some bankruptcy.”

Yes, but that’s a really good thing. For too long, money flows to idiots. There must be some bankruptcies.

Plus, all this Covid stay-at-home stuff has tricked people into thinking you really don’t have to work hard. Rude awake at the entrance!

– Elon Musk (@elonmusk) May 27, 2022

“Also, all this Covid stay-at-home stuff has tricked people into thinking you don’t really have to work hard. Rough wake-up at the entrance!” Musk added on his Twitter account.

The email urging Tesla executives to suspend hiring comes days after Musk told employees to return to work or leave the company.

“Anyone who wants to work remotely needs to be in the office or leave Tesla for at least (i.e. *minimum*) 40 hours per week. This is less than we want from factory workers,” Musk wrote in an email on Tuesday.

“Everyone at Tesla needs to spend at least 40 hours a week in the office,” Musk said in a follow-up email. “If you don’t come, we’ll assume you’ve stopped.”

Tesla shares fell eight percent in intraday trading on Friday morning.

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