Elon Musk sent out an email to Tesla executives on Thursday that said the company needs to pause hiring worldwide and cut about 10% of jobs, according to Reuters.
The email comes just two days after Musk notified Tesla employees that they will be required to come back to the office and work a minimum of 40 hours per week in-person, or they'll have to leave the company.
Tesla said in its financial filing report that it employed 99,290 people worldwide as of Dec. 31, 2021.
In the email to executives viewed by Reuters, Musk said that he has a "super bad feeling" about the economy, as he has warned about the risks of a recession.
Musk sent another email on Friday to all Tesla employees, informing them of the 10% cuts. He cited the main reason as being "overstaffed in many areas."
"Tesla will be reducing salaried headcount by 10% as we have become overstaffed in many areas," Musk wrote, according to CNBC. "Note this does not apply to anyone actually building cars, battery packs or installing solar. Hourly headcount will increase."
The company had about 5,000 job postings worldwide on its LinkedIn before the emails were sent out, according to CNBC.
The COVID-19 pandemic has created some problems for Tesla, as lockdowns in China have made it difficult for the electric vehicle company to restart its production at their Shanghai factory. Over one-third of Tesla's global deliveries came from China in 2021, Reuters noted.
The company's stock price has dropped 26.15% since May 4, falling from $952.62 per share all the way down to $703.55 per share as of June 3.
Adam Jonas, an analyst at Morgan Stanley, said that a message from Musk regarding jobs and the economy should be taken seriously.
"Elon Musk has a uniquely informed insight into the global economy. We believe that a message from him would carry high credibility," Jonas said in a report, per Reuters.
"If the world’s largest EV company warns on jobs and the economy, investors should reconsider their forecasts on margins and top-line growth."
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