According to an email sent to executives and obtained by the news agency, Musk is going to cut 10% of his staff and freeze hiring worldwide because he has a bad feeling about the economy.
According to the report, the shares of the company dropped in premarket trading.
Musk did not explain his reasoning. It's indicative of his larger concerns about an imminent economic downturn which could endanger his car company.
The message was sent two days after Musk told employees to either stay at the company or return to work.
Musk argued last week that a recession would be a good thing.
He said it had been raining money on fools. There needs to be some bankruptcies.
Analysts are not sure if Musk is right.
Carsten Brzeski, global head of macroeconomic research at Dutch bank ING, said that many people share Musk's feelings. We are not discussing the global recession. The global economy is expected to cool off at the end of the year.
Local COVID-19 rules make it difficult to accommodate workers at the site, which is why it has been difficult for the company to resume full operations.
Musk's failed attempt to buy Twitter has added to the troubles of the company.
It is not known whether the entire global economy will be with Musk for his ride.
Musk wants to cut 10 percent of his staff because of the economy.
The former manager of the company says workers will love the email from Musk.
All Rights Reserved © 2024
