‘Maybe Musk wants to reduce costs so that there is money to buy Twitter.’
Tesla Chief Executive Officer (CEO) Elon Musk said he had a ‘bad foreboding’ about the state of the economy and planned to lay off 10% of the electric car (EV) company’s employees.
The 10% layoff plan was revealed in an email to the company titled ‘worldwide hiring layoffs’.
The news comes 2 days after Musk ‘threatened’ employees to return to the office and failure to report themselves would result in them being fired.
So far, Tesla has not issued any comment on this matter.
It is understood that Tesla will have 100,000 employees by the end of 2021 and given the current situation in the United States (US) is plagued by inflation which is affecting economic growth, it is not surprising that Musk can act in such a way.
Not to forget also a weak company’s annual earnings report could be a factor to a reduction in hiring like what happened at Netflix Inc.
On different news, Musk was seen arguing on Twitter with Australian tech millionaire and Atlassian Plc co -founder Scott Farquhar.
It is believed that the altercation took place because Farquhar mocked Musk's actions which forced his employees to return to the office.
Musk responded by stating the recession served as an important economic clean -up in response to Farquhar’s whistling.
