Elon Musk wants to decrease 10% of Tesla employment

• Tesla is laying off 10% of its salaried workforce. On Friday, CEO Elon Musk sent an email to all employees.
• Tesla shares fell 8% following reports of the company’s headcount decrease.
• When asked about Musk’s dismal economic prognosis on Friday, President Joe Biden stated that while Tesla was cutting back, Ford and others were building up.

Tesla CEO Elon Musk announced in an email to all Tesla employees on Friday that the business will reduce 10% of paid personnel and rely on more hourly labour.

Tesla shares fell 9% by midday Friday after Reuters reported on an earlier email Musk sent to executives about his plans to reduce the company’s employment and express a “super bad feeling” about the economy.

Read More: Elon Musk has a “very terrible feeling” about the economy

Tesla stated in its year-end financial filing that it employs 99,290 workers worldwide as of the end of 2021.

On Friday, when news of Tesla’s layoffs broke, President Joe Biden was asked about Musk’s pessimistic economic prognosis.

While Musk is warning about economic anxieties and cuts, Biden says Ford is boosting its investment in developing new electric vehicles, hiring 6,000 additional union workers in the Midwest.

The president also praised Stellantis, a subsidiary of the former Chrysler Corporation, for making similar investments in electric car manufacture in the United States, as well as Intel for creating 20,000 new jobs in computer chip manufacturing.

Read More: Australia’s billionaire slams Elon Musk’s ultimatum to Tesla employees

“So, you know, lots of luck on his trip to the moon,” Biden quipped.

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