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Musk sees recession coming: Tesla is cutting thousands of jobs

Musk sees the recession coming
Tesla is cutting thousands of jobs

Global economic development is forcing electric car maker Tesla to cut staff. This was announced personally by the head of the company Musk. Above all, the tech billionaire wants to crush the administration, but also to expand production.

Electric car maker Tesla will cut 3 to 3.5% of its jobs in the coming months. This was clarified by company chief Elon Musk after mixed reports. Approximately every tenth job among white-collar workers is expected to be eliminated, while the number of blue-collar workers will increase over the long term. At the start of the year, the company had nearly 100,000 employees. In a video interview at the Qatar Economic Forum conference, Musk said Tesla sometimes created jobs for employees too quickly.

In March, Tesla opened its first European plant in Grünheide, Brandenburg. It is not yet clear whether jobs will be cut there too. The IG Metall union only pointed out over the weekend that the workforce in Grünheide was becoming increasingly dissatisfied with too low and unequal wages. That’s why hiring new employees isn’t progressing as quickly as expected. Meanwhile, according to IG Metall, the plant management has already begun offering higher pay for new hires than previous occupations.

Tech billionaire Musk reiterated that he expects a recession in the United States in the near future. In recent weeks, reports of a leaked email from Musk initially gave the impression that he wanted to cut ten percent of Tesla’s entire workforce, citing the weak economy.

The job cuts that have apparently already started in the United States are already creating problems. In Texas, Tesla is pilloried on suspicion of unannounced mass layoffs. Two former workers said they were summarily laid off at the Sparks gigafactory in June, the lawsuit claims. According to this, Tesla has put more than 500 employees on the road this month. Under US labor law, a notice period of 60 days is required for such a mass layoff. “Tesla simply informed employees that their terminations would go into effect immediately,” the lawsuit reads. The fired employees are filing a class action. Tesla could not be reached immediately for comment. Former employees ask for wages and benefits for the 60 days. Plaintiff’s attorney Shannon Liss-Riordan said Tesla is offering some employees a weekly severance package. This is not good enough.

Musk’s political beliefs were also a topic in the video interview. He recently announced that he would vote for Republicans in the future because President Joe Biden’s Democrats had become a “party of division and hatred.” When asked if he would also support former President Donald Trump if he ran for the White House again in 2024, Musk simply said, “I haven’t decided on this election yet.” He had previously hinted at supporting the equally conservative Florida governor Ron DeSantis in the run-up to office.

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