Tesla CEO Elon Musk has directed executives to pause all hiring and prepare for job cuts, according to a leaked email that was first viewed by Reuters.
Tesla shares fell 8.5% following the Reuters report.
His directives came the same week that Musk sent employees two emails, which were also leaked, that the company was ending its remote work option. Musk told staff that if they didn’t want to return to the office they should leave.
In the first email, which was later corroborated by Musk in a response via Twitter, he told employees that they must work a minimum of 40 hours in a Tesla office. A followup email entitled “to be super clear” explained that “the more senior you are, the more visible must be your presence.”
Image Credits: Screenshot/Tesla
Musk’s latest email strikes a gloomier tone about the economy, noting he has a “super bad feeling” and hints at a coming recession. Musk tells the executives who received the email that a 10% cut of its workforce will be required.
Tesla and its subsidiaries employs 99,290 people, according to its annual filing. Those employees are spread throughout its factories and facilities including its headquarters in Austin as well as in Buffalo, New York, Sparks, Nevada, Fremont, California, Berlin and Shanghai. Tesla also has a smattering of offices in California and Germany and retail stores in Europe, Australia and North America.