Tesla CEO Elon Musk said in an e-mail to all employees at the electric vehicle maker on Friday that the company will cut 10% of salaried workers and will instead rely on more hourly workers.
Thanks to Elon Musk‘s very public attempt to purchase Twitter, Tesla stock has been plummeting, and now, another hit is reportedly coming to the electric car company with CNBC’s news that shares immediately plunged again on Friday. In short, it’s a bad week for Tesla stock, which lost another 6% of its value after two leaked emails from Musk, and that adds up to a 25% drop over the past four months.
The message, sent on Thursday and titled “pause all hiring worldwide”, came two days after the billionaire told staff to return to the workplace or leave, and adds to a growing chorus of warnings from business leaders about the risks of recession.
Almost 100,000 people were employed at Tesla and its subsidiaries at the end of 2021, its annual SEC filing showed.
If Musk follows through on the layoffs, that would mean roughly 10,000 Tesla employees will now be out of a job. Then again, as Reuters noted, it hasn’t exactly been the best workplace over there this week. Not only did Musk threaten to fire anyone who didn’t stop working remotely, but he accused them of “pretending” to do their jobs.
Musk is also severely angering shareholders who are reportedly tired of the “circus show” he’s caused with his attempt to acquire Twitter. That deal lead to stocks plummeting for both companies. In fairness, Tesla’s stocks were already in trouble due to manufacturing delays caused by the recent COVID lockdowns in China, but Musk poured fuel on the fire with his egotistical desire to own Twitter. Compounding all of those issues, Musk is now facing allegations of sexually harassing a Space X employee.
In short, things aren’t going great for the Elon Musk empire.