Tesla to pause all hiring, reduce workforce significantly

Elon Musk is not a stranger to tough decisions and after only recently telling all Tesla staff to return to office or leave the company, he has just sent a gloomy looking email to the executives of the company. The email was titled: “pause all hiring worldwide”.

Shares of the company took an instant nosedive to $726 and are still falling at the time of writing, previous close was $775 which represents 6.75% drop but the dive is not just a response to the hiring freeze. Tesla has lost nearly 40% of its value since the beginning of this year.

The CEO of Tesla mentioned in the email that he has a “super bad feeling about the economy” and in order for the company to brace for rough times ahead he suggests cutting the workforce by 10%, which translates to 10,000 jobs. Elon Musk has been vocal about a looming recession and Tesla is the first global automaker to start cutting jobs despite EV demand currently growing at its highest pace.

Musk is not the only one talking about recession, his comments are echoed by many executives from many industries, inflation in the US is the highest the country has seen in 40 years with the costs of living proving a challenge for many Americans. The global markets are not immune either, with similar inflation and increased costs of living troubling the whole world. Many financial analysts agree that tough times are ahead of us and Tesla is simply preparing to weather the storm in a good, lean shape.

If the past experiences are anything to go by, then the entire industry should pay closer attention to Tesla - the company had a good deal of foresight when it went into supply chain deals years before anybody else even considered possible disruptions, the company displayed so far great fortune telling skills in entering other markets and expanding its operations. Tesla clearly has a very skillful data science team and knows how to utilize their knowledge. What is good for the company though, will be life changing for 10,000 employees. Losing your job on the brink of recession will be painful.

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