Musk announces hiring freeze for Tesla, may layoff 10 percent employees: Report

Tesla CEO Elon Musk created ripples across financial, automobile, and tech industries after he announced that the carmaker is instituting a freeze on hiring and is also looking to cut around 10 percent of its workforce across the globe. Explaining his rationale behind the decision, Musk said he has a “super bad feeling” about the economy.

An internal mail has been spotted by Reuters claiming that Tesla is not only trying to institute a freeze on hiring but also plans to cut down workforce by a whopping 10 percent. The mail spotted by Reuters is titled “Pause all hiring worldwide.” To gain some context on the amount of jobs that are at risk if this report turns out to be true, Tesla reported 1 lakh employees by the end of 2021.

Tesla’s stock took a beating after the report surfaced on Reuters. Tesla shares were down 3.4% in premarket trading after closing up 4.6% to $776 a share on Thursday.

The new report comes at a time when the US market is facing economic turmoil amidst raising inflation and unstable geopolitical situation. Inflation in the country is reaching record levels creating uncertainty in the economy. Earlier this week, Musk took a strong stance against his employees working from home. So much so, that the company is ready to let go of those who are not willing to come back to office.

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