Crisis to come, Elon musk wants to reduce his workforce by 10%.  - Insolentiae

Crisis to come, Elon musk wants to reduce his workforce by 10%. – Insolentiae

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You can like Musk or not, let’s try here, not to have a moral posture to try to understand what I think needs to be understood.

In an email sent to company executives, the boss of the electric vehicle manufacturer indicates that he wants to lay off 10% of the workforce and also wants to freeze hiring.

“Elon Musk has a “super bad feeling” about the current economic situation and is now taking the initiatives he deems necessary to get through this turbulent zone.

In an e-mail sent to the company’s senior executives, the founder of Tesla indicates that he wants to quickly reduce the group’s workforce by 10%. As a reminder, the manufacturer currently employs 99,920 people worldwide, which implies approximately 10,000 layoffs.

However, Elon Musk indicates that this decision does not concern production sites. “Note that this does not apply to people who build cars, batteries or install solar panels,” he adds in his email.

The boss of Tesla obviously considers that his company is overstaffed, especially in its offices, and wants to reduce its payroll to reduce its expenses. To compensate for the dismissal of more than 9,000 employees, Elon Musk indicates that the number of hours worked will increase soon.

Elon Musk also wants to put a stop to hiring made by Tesla and remove all current job offers. The automotive group had posted nearly 5,000 offers in recent weeks, which should be removed shortly”. (Source Clubic.com here)

Why will you tell me, electric cars, especially Teslas, are selling very well!

Certainly, but for Musk, these are “austerity measures to deal with a probable economic recession”.

Always too little and too late.

In another life I was a banker, and I saw as many companies file for bankruptcy as companies held up over time, I saw quite a few manage to exceed a size other than that of the SME.

The entrepreneurial journey is ruthless.

Darwinian even.

Only the fittest survive and there is no sentiment from the ‘market’.

I have been able, year after year, to see the commonalities between those who succeed and overcome crises and those who fail.

One of the first criteria is to act very quickly and very strongly, which is always politically incorrect and makes you look at best like a madman, a madman or a bird of bad omen.

What is Musk doing here?

He folds the sails of the ship before the storm he sees coming and that he “feels”, because yes, life is also what we “feel” and “feel”.

We talk about the survival instinct… No scientific approach to survival with a “randomized” double-blind study with a control group.

Listen to your instincts.

Still.

Your instinct is inherited from tens of thousands of years of evolution and has enabled each of us to be “survivors”.

Elon Musk feels that things are likely to go wrong in large widths, so he activates his own resilience plan, and this involves reducing the sail area.

He is right and we all need to do the same, preventively.

In the worst case, we will raise the sails if the storm does not come or we avoid it.

We’ll rejoice, but if the wind blows, we won’t tear our sails, and we’ll have something more to hoist when the good weather returns.

If you are not subscribed to the STRATEGIES newsletter and you also want to go further in this idea of ​​resilience and know how to go about weathering the coming storm, you can subscribe here (you will also have access to more than 80 files already edited).

Charles SANNAT

“This is a ‘presslib’ article, that is to say free of reproduction in whole or in part provided that this paragraph is reproduced following it. Insolentiae.com is the site on which Charles Sannat expresses himself daily and delivers an impertinent and uncompromising analysis of economic news. Thank you for visiting my site. You can subscribe to the daily newsletter free of charge at www.insolentiae.com. »

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