Why Elon Musk wants to slash 10% of Tesla's workforce
- Elon Musk reportedly wants to slash 10% of Tesla's workforce
- He has also halted all hiring activities
- The billionaire based his reported decisions on a "super bad feeling" about the economy
Tesla CEO Elon Musk has said that he has a "super bad feeling" about the global economy, and has called for a temporary halt to all hiring activities worldwide, in addition to calling for a cut in the electric car maker's workforce.
According to Reuters, which viewed an internal email titled "pause all hiring worldwide" sent to Tesla employees on Thursday, the 50-year-old billionaire called for a 10% cut in Tesla's workforce.
Tesla currently has around 100,000 employees worldwide, and a 10% cut would mean the loss of 10,000 jobs. The company did not respond to Reuters' requests for a comment. Musk, at the time of writing this article, had not commented on the report either.
The news comes a couple of days after the billionaire asked all Tesla employees to return to the workplace or face the risk of being fired.
"Everyone at Tesla is required to spend a minimum of 40 hours in the office per week," the 50-year-old wrote in that email, adding, "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," Musk had further said.
Subsequently, the world's richest man had a heated social media exchange with Atlassian Plc co-founder Scott Farquhar, who ridiculed Musk's demand as "something from the 1950s."
In response, the Tesla CEO tweeted, "recessions serve a vital economic cleansing function," something that he had alluded to earlier.
In late May, when quizzed about whether the economy was headed towards a recession, Musk had said, "Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen."