Sources told Electrek that Musk is planning to implement a hiring freeze and conduct a round of layoffs in the next fiscal quarter as the company's stock tumbles.
A source familiar with the situation said that company officials told employees about the hiring freeze and layoffs.
The wave of layoffs would be the second in recent months for the Austin, Texas-based automaker, after Musk reportedly said he wanted to cut 10% of its workforce in June.
It comes amid a wave of mass layoffs among US banks, manufacturers and tech companies.
Musk was stripped of his title as the world's richest person earlier this month due to a slump in his company's stock price and concerns over his decision to relax its moderation policies.
On Tuesday, the stock fell to $137.80, its lowest point since November 2020, after dropping to a two year low last week.
On Wednesday, Musk said he was looking for a successor and that he would step down as soon as he found the right person. Since completing his purchase of the platform, Musk has come under scrutiny. Over the past week, he has been called out for suspending multiple journalists as well as an account linking to rival social media platform Mastodon, which Musk claims was used to post information on the location of his private jet. Some journalists had their accounts restored on Saturday, but others appealed the suspension after they were asked to remove a reference to the Musk jet.
Two former employees sued the company after it failed to give them advance notice of mass layoffs. The suit states that more than 500 employees were let go. Musk's announcement that he took a 9% stake in the micro-messaging service in April caused the stock price of the electric car company to plummet.
The S&P 500 has lost 57.45% of its value since the beginning of the year.
There will be a hiring freeze and a round of layoffs.
TuSimple is cutting hundreds of jobs, according toForbes.