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Elon Musk wants to cut 10% of Tesla jobs

TechElon Musk wants to cut 10% of Tesla jobs

San Francisco (The Times Groupe)- Tesla (TSLA.O) CEO Elon Musk has a “super bad feeling” about the economy and needs to cut about 10% of salaried staff at the electric carmaker, according to emails seen by Reuters.

“Pause all hiring worldwide,” he said in a message sent to executives on Thursday, just two days after the billionaire told staff to return to work or leave. The message adds to a growing chorus of warnings about the risks of recession from business leaders.

In response to the Reuters report, Tesla shares fell 9% in U.S. trade on Friday. The tech-heavy Nasdaq (.IXIC) fell about 2%.

Musk wrote to Tesla employees on Friday that Tesla will reduce salaried headcount by 10% as it has become “overstaffed in many areas,” but that “hourly headcount will increase.”

“Please note that this does not apply to anyone building cars, batteries or solar panels,” Musk wrote in an email seen by Reuters.”Please note that this does not apply to anyone building cars, batteries or solar panels,” Musk wrote in an email seen by Reuters.

As of the end of 2021, Tesla and its subsidiaries employed almost 100,000 people, according to its annual SEC filing. Tesla did not break down the number of salaried and hourly workers.

Musk has warned of recession risks in recent weeks, but his email ordering a hiring freeze and staff cuts is the most direct and high-profile message of its kind from an automaker, while others have described sky-high demand.

“Elon Musk has unique insight into the global economy. A message from him would have high credibility,” Morgan Stanley analyst Adam Jonas said in a report.

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