Elon Musk has asked Tesla executives to pause hiring worldwide because he has a “super bad feeling” about the economy, reports Reuters, who has had access to an email sent by the tycoon himself to the directors of the company that he himself founded and directs. The tycoon also plans to rReduce Tesla’s current workforce by around 10% for this very reason.
The email to which you have had access to the aforementioned medium, which has as subject “pause all hiring worldwide”, seems to be related to the one that Elon Musk sent a few days ago to all Tesla employees. In this, Musk who was reluctant to allow these to telecommute most of his day. The tycoon also invited all those workers who did not want to return to their jobs and spend at least 40 hours a week in the office, to resign from his post.
In the new message, sent only to executives, Musk does not appear to mention his decision to assume that those workers who do not show up at the office have resigned. Instead, he calls for a hiring freeze around the world. All this, despite the fact that currently, and as reported by the aforementioned media, Tesla has 5,000 vacancies available globally. The cut of 10% of the workforce that the tycoon also plans, on the other hand, would mean the dismissal of 10,000 employees. And it is that Tesla, according to data from the SEC, has 100,000 workers worldwide.
Tesla is not the only company that has hit the brakes on hiring
Although Elon Musk does not seem to clarify the reasons for his “super bad feeling” about the economy, everything points to the fact that his decision is related to the possible recession risks. Curiously, the tycoon confirmed a few days ago on his Twitter profile that the loss of economic activity could last 12 or 18 months, and that, in reality, it is a good thing. “Some bankruptcies have to happen,” he noted in one post.
Tesla, however, has spent weeks facing production problems at its Shanghai plant. This, let us remember, was inoperative for more than 20 days due to the restrictions imposed by the Chinese government due to the COVID-19 outbreaks. According to Reutersassembly has been reduced by up to 200 vehicles per day, instead of the 1,200 per day that the factory could carry out before the restrictions began.
Tesla isn’t the only company to pause hiring amid economic woes. Goal (Facebook) confirmed a few weeks ago its intention not to hire new workers due to the prediction of a drop in income during the second quarter of 2022. The freeze in the hiring of new talent could also significantly harm the development of the metaverse.