Anticipating US downturn, Tesla boss details staff cuts

DOHA: Elon Musk, CEO of Tesla, said a 10% cut in salaried staff at the electric car maker will happen over three months, as the world’s richest man predicted a US recession was more likely than not.

His remarks were his most detailed explanation of job cut plans and his first in-person appearance since the media reported at the start of this month that the company needed to cut staff by about 10% and was pausing hiring worldwide.

Speaking at an Economic Forum event here, Musk said the cuts would apply only to salaried workers, meaning a 3.5% reduction in total headcount, changes he described as “not super material”. But he expressed concern about the prospect of a US recession. “It’s not a certainty, but it appears more likely than not,” he said. Musk’s outlook echoes comments from executives, including JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs President John Waldron. A “hurricane is right out there down the road coming our way,” Dimon said early this month.