Elon Musk is considering a recruitment freeze and a 10% cut in jobs over a 'super bad feeling' about the economy. That is according to an internal email seen by Reuters.
Tesla has around 5,000 job opportunities available across the globe and boasts 100,000 employees. But Musk sent an email to executives on Thursday (June 2) saying 'pause all hiring worldwide'.
The move comes days after Musk ordered all Tesla workers to return to offices or face immediate termination. Tesla stock dropped by around 3% after the news, reports the Guardian.
There has so far been no sign of sales slowing for Teslas or other electric cars. And the usual signs that suggest a downturn is coming are yet to hit.
Tesla's stock however has been hammered, falling by 22% since Musk used his shares to help finance a takeover of Twitter. Anxiety about the global economy and Covid-19 have also hit the price of shares.
There had been speculation suggesting Musk's command to return to offices was a bid to cut staffing levels. Reports suggest staff said they were unable to hold meetings in offices as the company expanded during the pandemic.
“The more senior you are, the more visible must be your presence,” said Musk in the return-to-the-office email. “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.”
The German union, IG Metall, has said it will support any worker who continues working remotely. “Whoever does not agree with such one-sided demands and wants to stand against them has the power of unions behind them in Germany, as per law,” the district leader for the union told Reuters. Tesla has 4,000 workers in Germany.
