Billionaire Elon Musk asks Tesla to halt global hiring

In a letter to Tesla executives, billionaire Elon Musk expressed his “extreme worry” for the economy, under the impact of high inflation and the war in Ukraine, Reuters reported on June 3.

Elon Musk asked leaders at Tesla globally to suspend hiring and cut current employees by 10%.

Elon Musk’s announcement was sent shortly after JPMorgan Chase’s chairman, Jamie Dimon, said that the economy is facing “storms”.

Many analysts agree with the concerns of the American billionaire. Experts say that rising inflation, prolonged war in Ukraine and China’s shutdown are negative factors that can weaken spending power, causing the economy to go down.

“While the Fed thinks a mild economic slowdown is possible, there are alarming signs that are still underway. We know growth is slowing, inflation remains high, and banking is on the edge,” he said. The US central government will have to take tough measures to curb inflation,” said Fiona Cincotta, financial markets analyst at City Index, London.

On the other hand, some analysts believe that, if inflation cools down and disappears early next year, the world will not face a worsening economic scenario as billionaire Elon Musk predicted. Analysts said that the reduction of personnel is not a good solution, high-quality personnel will always be needed in the future.

“If this economic shock is only temporary, companies will have to consider not losing workers,” said Lorenzo Codogno, former head of economics at the Italian state treasury.