Elon Musk Turns to His Earlier Playbook as Tesla Plans Job Cuts

In an email to employees, the CEO warned that Tesla plans to reduce "overstaffed" office workers by 10%. According to the people who received the memo, they asked not to reveal their identities to explain the details.

This surprised some analysts and industry watchers who were surprised by Tesla's record delivery, despite the lack of critical components. The company's stock fell 9.2% on Friday, the sharpest plunge in five weeks, as investors digested Musk's bearish view.

Just last month, the CEO celebrated his second "AI Day" and introduced the capabilities of electric vehicle makers in artificial intelligence, software, and chips. This is a move aimed at further attracting engineering talent.

Tesla has grown to approximately 100,000 employees worldwide, and the number of hourly workers installing battery packs and solar roofs is expected to continue to grow. However, Mask seems to be returning to his launch mode playbook to rekindle the sense of urgency.

The planned cuts were fueled by concerns about the possibility of a recession, which said Musk had "very bad feelings" about the economy, according to a Reuters Friday report. The comment was despised by President Biden, who dismissed the warning after being asked for a warning by a reporter.