Elon Musk details Tesla staff cuts in anticipation of US economic downturn

Elon MuskDirector of Teslasaid a 10 percent cut in the electric carmaker’s salaried staff will come in three months as the world’s richest man predicted a US recession was more likely.

His comments were his most detailed explanation of job cut plans and his first in-person appearance since Reuters reported earlier this month that the company needed to cut staff by about 10 percent and was pausing hiring worldwide. .

At the Qatar Economic Forum hosted by Bloomberg, Musk said the cuts would apply only to salaried workers, meaning a 3.5 percent reduction in the total workforce, changes he described as “not super material.”

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But he expressed concern about the prospect of a recession in the United States.

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“It’s not a certainty, but it seems more likely than not,” he said.

Musk’s perspective echoes comments from executives, including JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs Chairman John Waldron. A “hurricane is right there, on the way, coming our way,” Dimon said earlier this month.

Whether the United States will enter a recession has been a growing concern for CEOs, the Federal Reserve and the Biden administration.


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US inflation at its highest level in 4 decades


US inflation at its highest level in 4 decades

US President Joe Biden on Monday reiterated that he felt a US recession was not inevitable, even as the world’s largest economy struggles to cope with rising gasoline prices and the inflation, which is at its highest level in 40 years.

Former US Treasury Secretary Lawrence Summers told NBC News on Sunday that he expected a recession.

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In a June 2 email seen by Reuters, Musk told Tesla executives he had a “very bad feeling” about the economy and that the company needed to cut staff by 10 percent and “pause all hiring around the world.

He said Tuesday that Tesla hoped to increase the number of workers paid by the hour instead of fixed salaries.

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He also said that he would stay with the digital currency and that he intended to personally support dogecoin.

The digital currency has been extremely volatile this year, but bitcoin soared following Tesla’s announcement in February last year that it had bought $1.5 billion of the currency and briefly accepted it as payment for vehicles.

‘VERY SIGNIFICANT MATTER’ UNRESOLVED IN TWITTER SETTLEMENT

Elon Musk also discussed his offer to buy Twitter, which Forbes magazine reported earlier this month that he had agreed to buy for $44 billion.

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Musk said there were unresolved issues, including the debt portion of the deal and the number of spam users.

“We’re still waiting for a resolution on that matter, and that’s a very important matter,” he said, reiterating doubts about Twitter’s claims that fake or spam accounts accounted for less than five percent of its monetizable daily active users.

“And then of course there is the question of whether the debt portion of the round will come together. And then the shareholders will vote in favor?


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Freeland is not sure if Canada will enter a recession in the next few years


Freeland is not sure if Canada will enter a recession in the next few years

Musk said he would like to have 80 percent of North America and half of the world on Twitter.

“My aspiration for Twitter is to be as inclusive as possible,” he said.

The most important thing was to take the company in the right direction, as in his private rocket company SpaceX and Tesla, he said.

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“Whether I am the CEO is much less important than my ability to push the product in the right direction,” he said.

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