Tesla’s CEO Thinks The Company Needs To Cut Staff By 10%; Pause All Hiring

Tesla's CEO cut 10% job and pause all hiring worldwide

Elon Musk, the CEO of Tesla and SpaceX, sent an email on Thursday saying that his company needed to cut staff by 10 per cent until it can achieve profitability. With a hefty cost accounting for shooting up the price of Tesla cars in China, the CEO is hoping skills changes will reduce expenses and help pay off investors. An email with titled “Pause All Hiring Worldwide” was sent to the Tesla executives on Thursday.

How Did Elon Musk Come Up With His Decision To Cut 10% of Staff and Pause of all Hiring

As per the internal research of Reuters, Elon Musk feels “super bad feeling” about the company, he said, “the company needs to cut its staff by 10% and pause of all future hiring worldwide.”

This move will undoubtedly affect Tesla’s employees. It is unclear how many workers will be affected by these layoffs, but it is likely that they will be reductions in both salaried and contract positions.

So, he is turning to layoffs in order to reduce costs and improve operating performance.

The Pros and Cons of These Cuts

Tesla CEO Elon Musk has said that the company needs to cut staff by up to percent in order to keep up with its production goals. He believes this will allow the company to maintain its competitive edge.

However, some employees are worried about the potential layoffs and the effect it would have on their job security. They fear that their roles at Tesla may amount to little more than manual labor now that automation is taking over a large portion of the company’s production process. They also worry about being made redundant in an effort to reduce costs.

Overall, there are pros and cons to these cuts. On the one hand, they may help Tesla keep up its production schedule. On the other hand, some employees may lose their jobs, and there could be a decrease in the quality of products. It will be interesting to see how things play out over the coming weeks and months.

What Does This Mean for Tesla in the Future?

Tesla’s CEO, Elon Musk, mailed that the company will be halting all hiring in order to reduce the company’s staff by a percentage. This means that there will be fewer employees working on the development of Tesla vehicles.

What this means for Tesla in the future is still unknown. It is possible that Tesla will have to layoff some of its current employees in order to make room for new hires. However, it is also possible that Tesla will be able to find new ways to bring in resources and keep its operations running smoothly.

Whatever the case may be, it is clear that Tesla’s CEO is taking measures to ensure the long-term viability of his company.


Tesla’s CEO, Elon Musk, said the company will need to cut staff by about 10 percent and pause all hiring in order to avoid becoming a “cult-like” company. While this may be difficult for some current Tesla employees and investors (who have become rather attached to their jobs), it seems as though Tesla is facing some significant challenges that warrant drastic measures. The future of Tesla looks promising but faces a lot of hurdles, most notably its cash flow and continued production ramp for its Model. We’ll have to see how these developments play out over the coming months.

Related: Tesla: Struggling with Indian Government to launch EVs

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