The firm’s CEO has warned that a US recession is “probable.”
Tesla’s chief executive, Elon Musk, announced on Tuesday that the company will reduce its salaried employees by 10% over the next three months. Speaking at the Bloomberg-hosted Qatar Economic Forum, he additionally issued a recessionary warning for the US.
The CEO of the electric car manufacturer stated that while a recession is unavoidable at some point, one shortly is more probable than not.
Musk expressed his “very terrible feeling” about the economy earlier this month. At that time, it was initially revealed that he intended to cut positions because he felt the business was overstaffed.
Electrek, an auto-focused news website, reported that the changes will only affect salaried personnel and not hourly workers. Musk stated that the layoffs would “not apply to anyone actively constructing cars, battery packs, or installing solar” in an email to company employees published by Electrek.