Tesla to Cut 10% of Workforce Amid Musk's Economic Fears
Elon Musk directs Tesla executives to pause all hiring and reduce staff by about 10% due to a "super bad feeling" about the economy. The announcement follows similar warnings from other major corporate leaders despite a currently strong labor market.
Tesla CEO Elon Musk reportedly directs executives to pause all hiring worldwide and cut about 10% of the company's staff due to his "super bad feeling" about the economy. An internal email seen by Reuters reveals these planned cuts, though Tesla does not respond to requests for comment about the sudden workforce reduction.
Musk's warning arrives as stock markets tumble over fears of a recession driven by aggressive interest rate hikes from the Federal Reserve. When asked about the situation, President Biden dismisses the comments with a sarcastic remark about Musk's space travel plans, prompting a brief public retort from the Tesla CEO.
Other prominent business leaders share this growing economic anxiety, with JPMorgan Chase CEO Jamie Dimon warning of an approaching economic hurricane. These corporate concerns contrast sharply with recent labor data showing a robust jobs market that adds 390,000 positions in May.