Anticipating U.S. Downturn, Elon Musk Details Tesla Staff Cuts

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Elon Musk, CEO of Tesla (TSLA.O) says a 10% cut in salaried staff at the electric car maker will happen over three months. As the world’s richest man predicted, a U.S. recession was more likely. His remarks were his most detailed explanation of job cut plans and his first in-person appearance. The company needed to cut staff by about 10% and was pausing hiring worldwide.

Musk’s outlook echoes comments from executives, including JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs President John Waldron. A “hurricane is right out there down the road coming our way,” Dimon said early this month.

U.S. President Joe Biden reiterated on Monday that he felt a U.S. recession was not inevitable, even as the world’s largest economy struggles to tackle soaring gasoline prices and inflation. Which is at its highest in 40 years. Former U.S. Treasury Secretary Lawrence Summers told NBC News on Sunday he expected a recession.

The digital currency has been extremely volatile this year, but bitcoin surged following Tesla’s announcement in February last year. It had bought $1.5 billion of the currency and, for a short time, accepted it as payment for vehicles. Elon Musk also spoke about his bid to buy Twitter (TWTR.N), he had agreed to buy for $44 billion.

Musk said he would like to get 80% of North America and half the world on Twitter. My aspiration for Twitter is to be as inclusive as possible. The most important thing was to take the company in the right direction, as at his private rocket company SpaceX and Tesla. He said “Whether I am CEO is much less important than my ability to drive the product in the right direction”


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