Elon Musk tells Tesla executives the company must lay off 10 percent of its staff

Elon Musk emailed Tesla executives on Thursday, Reuters reports that the company should stop hiring globally and reduce its workforce by about 10 percent. At the end of 2021, Tesla said in a filing that it had 99,290 employees worldwide. Seen in the email by Reuters, Musk cites his “super bad feeling” about the economy.

One thing to note is that widespread layoffs are not an uncommon practice for Musk and Tesla. Hundreds of employees were laid off in October 2017, nine percent of the workforce in June 2018 and about seven percent in January 2019. affected. Still, Musk recently sent a company-wide email claiming that for out-of-office employees (subject to his permission to continue working from home), “we’ll assume you’ve resigned.”

This directive is also happening as Musk’s deal to buy Twitter is apparently moving forward, albeit without including margin loans contracted against shares Musk owns in Tesla. As Reuters notes that demand for electric cars still far outstrips production, and Tesla reported more than $3 billion in profit for the first quarter of this year. However, Tesla has faced closures at its Chinese gigafactory due to COVID-19 lockdowns. Wedbush Securities analyst Daniel Ives suggested the shutdowns in China will negatively impact Tesla’s delivery numbers this month, and cost cuts make sense ahead of that news.

Besides the impediment to Musk’s finances and attention caused by the Twitter deal, inflation or anything else that could affect his outlook, there is also the crash of the “crypto winter”. musk”favorite cryptocurrenciesDogecoin has seen its value drop nearly 60 percent in the past six months, while Bitcoin, from which Tesla bought $1.5 billion in early 2021, is also falling. In its latest annual report, Tesla said the “fair market value of our bitcoin holdings as of December 31, 2021 was $1.99 billion.” At the time, Bitcoin’s price was $46,224.39, and at the time of writing, Coinbase reports that the price is $29,803.70, down about 35 percent.

Frank Broholm had acquired considerable experience in writing and editing publications before recruited by The Media Today Chronicle News portal as Editorial Manager. His key task is to conduct effective business reviews based on the most recent business…